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What is an Independent Sales Organization?

With the advent of more and more businesses taking credit cards as payment for their products or services, these companies must also need the infrastructure for taking these types of payments. Cash only businesses are becoming less frequent as more people use plastic. This is particularly true of businesses that only operate online. For micro or small businesses, letting customers pay with plastic can be cost prohibitive, making it nearly impossible for them to start up. They need a relationship with a bank and must pass rigorous requirements before a bank will allow them to take plastic. This is where independent sales organizations or ISOs come into play.

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What is an Independent Sales Organization?

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  1. What is an Independent Sales Organization?

  2. With the advent of more and more businesses taking credit cards as payment for their products or services, these companies must also need the infrastructure for taking these types of payments. Cash only businesses are becoming less frequent as more people use plastic. This is particularly true of businesses that only operate online. For micro or small businesses, letting customers pay with plastic can be cost prohibitive, making it nearly impossible for them to start up. They need a relationship with a bank and must pass rigorous requirements before a bank will allow them to take plastic. This is where independent sales organizations or ISOs come into play.

  3. On behalf of the small business, ISOs establish the relationship with the bank, acquire the equipment needed to swipe the cards and provide the support the businesses need. They also must advertise their services to get customers. In addition, they must prove to the banks that they build relationships with that they can meet the compliance requirements that protect the credit card holder’s information. In addition, there are fees they must pay to the banks to establish and maintain these relationships.

  4. Why Would They Need Capital Funding? Even if you are an established ISO there are reasons that you may need capital funding once you are established. Compliance regulations change and get more strict with each change. When these requirements change the ISOs must implement these changes, then prove that they are compliant. This could mean that they need new software or that the software they use has to be updated. Once updated it has to be implemented and tested.

  5. If an ISO has staff that is part of their base organization, their onsite staff implements, and tests these changes. But many ISOs aren’t large enough to have this staff and must contract with consultants to accomplish the change. All of these changes have strict deadlines. A company that provides merchant cash advances, like Cresthill Capital, may be contacted to loan them the funds they need for this unforeseen expense.

  6. Another reason ISOs may need a merchant cash advance is if they need new hardware that will accommodate the changes or will allow them to expand their customer base. Some of the requirements could require that they store information for a longer period of time which would require larger servers or more servers, depending on their business model.

  7. Why Not Just Go to a Bank? Part of the reason an ISO may not go to a bank is that the loan process a bank uses takes time. This may be the time that the ISO doesn’t have depending on what they need the cash advance for. As an example, Cresthill Capital reviews your business using criterion like your cash flow over time and how you use this cash flow in relation to your business. They are less concerned with your credit score and more concerned with you having a viable and growing business.

  8. They also want to ensure that a reasonable amount is set aside or put directly back into your business. The best part about a capital funding company is that once you are approved, your funds can be in your bank within hours of signing the contracts. Just make sure you do your research before signing any contract. For example, check out Cresthill Capital complaints if that is a company you want to work with, and see how they manage any problems with their customers.

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