Best Business Loans for Hospitality / Glossary / Factor rate

Glossary

What is a factor rate?

Answer in brief

A multiplier that sets the total you repay, for example 1.2 times the advance.

It isn't an interest rate. Faster repayment means a higher effective annual cost.

Related: Merchant cash advance.

Find finance for your hospitality business →

Free, no obligation. Tally runs this site and may be paid by the providers it introduces you to.