A new era called co-funding

Posted Wednesday, July 13 2011 by admin

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.