$50,000
$5,000$500,000
1.32
1.101.50
12 mo
3 mo18 mo

Total payback

$66,000

Fee paid

$16,000

Daily payment

$262

APR-equivalent

27.6%

What this means. A factor rate isn't an interest rate. You pay the full 1.32× back regardless of how fast you repay. The APR-equivalent above shows what that looks like as a traditional interest rate — useful when comparing to a line of credit or term loan.

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