What is a Factor Rate?

How it Works

A factor rate is a simple way to see exactly what you will pay back. It is a single number that shows the cost from day one. Unlike a bank, this number does not change or grow over time.

The Simple Math

{Money Received} x {Rate} = {Total to Pay Back}

For Example:

If you get $10,000 and the rate is 1.20, you will pay back $12,000.

• $10,000 (The money you get)

• $2,000 (The .20)

• $12,000 (The total amount you pay back)