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Understanding Factor Rate and How it Determines Your Business Loan Repayment Plan

Factor rate Loan

Unlike personal loans and mortgages, equipment financing/leasing doesn’t account for an interest rate or APR.  Instead, the amount of interest you’ll end up paying is calculated using a method called factor rate. A factor rate — is essentially “interest”, but calculated at the outset of the loan and spread across your payments throughout the borrowing period. This type of financing is beneficial for your businesses in two ways:  First, because it allows you to pay a consistent, predictable payment for Read More