ISOs: How to Get the Most Out of Your Lender Relationships

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ISO Lender Relationships

As an ISO, or Independent Sales Organization, you represent small businesses, matching them to funders that are best equipped to meet their needs—whether that is fast access to capital, a large funding amount or finding a lender that caters to a niche industry.

It’s best to work with a variety of funders who will help you meet the capital needs of your customers, exactly when and how they want it. To start, that means you’ll have to do your homework and find out which funders finance which types of deals.

Before Applying with Lenders

Before applying with a lender, here are a few questions you should ask to make sure you’re covering both your needs and the needs of your customers.

  • What’s the funding process? How long does the funding process take? Some deals can be funded in as few as two business days while others take a week or two. Find out what the lending thresholds are for each of your financiers and the basic stipulations to get a deal funded. For example, some lenders will want landlord verification or site inspections based on the funding amount.
  • What are the buy rates? Are there different buy rates for different types of deals?
  • What are the maximum points you can upsell? Different funders have different commission plans and you want to make sure you know the maximum commission you can make. You also want to know what the commission is on renewals.
  • Are there ancillary fees? What is the origination fee and are there any associated processing fees?

The Application Process

Once you decide which lenders you’d like to work with, you’ll need to apply. Typically, you’ll fill out an application with each lender who will review the details and do an interview. The entire process should take about two business days. Once you’re set up as an agent, you can begin submitting business.

Getting To Know Your Lenders

Beyond the obvious benefit of understanding what you’ll get out of a funded deal, getting to know your lenders means you’ll be able to close deals faster and take on additional new business. It also means you’ll keep your customers happy by not wasting their time and sending their information to funders who can’t fund their business.

Lastly, it is important for ISOs to be in constant communication with their Relationship Manager at each lender. This is the person who will be able to answer questions, communicate changes, and provide feedback throughout the life of your partnership.

It takes time, but eventually, based on your history of funded deals, you’ll begin to know which lender will approve which deals, making the process quick and seamless.


William Rosenberg

BFS Capital Director of Business Development, William Rosenberg has nearly 20 years’ experience working with ISOs in the financial services industry, including 5 years in his current position. He has helped oversee Business Development at several major lenders, helping thousands of businesses secure funding.

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