A new era called co-funding
ISOs (independent sales offices) are no longer seen as merely agents between Merchant and Merchant Cash Advance providers as ISOs can now participate in the sale of a cash advance in what is known as co-funding or syndication.
Co-funding or syndication is a simple process involving the ISO co- funding a percentage of a cash advance.
This innovation allows the ISO to still claim commission on the sale and simultaneously receive the payback percentage on the cash advance.
Co-funding is fairly new and it gives ISOs more of an incentive says 1st Merchant Funding co-founder Levi Rosenblum, "It creates more motivation for an agent to sell an advance. Co-funding has not been around for very long, but we are seeing more interest in it.”
The full article can be read here.