Read the cost correctly
A 'factor rate' of 1.3 on $50,000 means repaying $65,000 — over six months, that's far higher than a 30% annual rate. Ask for total repayment, payment frequency and an annualized cost before comparing.
Good and poor fits
Short-term financing can fit a specific, quickly repaid need such as a confirmed seasonal order. It's a poor fit for ongoing losses or long-term investments, and stacking several advances can quickly strain cash flow.
Run the numbers
Use a rate you were quoted, or test a range. Not a quote.
10 years / 120 months
Estimated monthly payment
$3,234.94
Total interest
$138,193
Total repaid
$388,193
Fixed-rate, fully amortizing estimate. Excludes variable-rate changes, prepayment terms, guarantee fees and closing costs unless entered. Not an offer or approval.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Talk with a financing specialistCommon questions
What's a factor rate?
A multiplier on the amount borrowed that sets total repayment. It isn't an interest rate and can mean a high annual cost.
Is a line of credit better?
For recurring short-term needs, a line of credit is often more flexible and cheaper. It depends on what you qualify for.
Can I refinance an expensive advance?
Sometimes. See our refinancing guide.