1 Factor rate is the financing cost divided by the loan amount - but that’s not how traditional interest rates work.
For example, if you pay 30 cents for a one-year loan of one dollar, your factor rate is 30% but is equivalent to a 55% interest rate!
Factor rates can make short-term loans appear less expensive than a traditional interest rate would.
2 These loans require you to repay a fixed amount of interest, so paying off early won't save you any money.
In fact, it can increase your effective interest rate to 200% or more.
3 Payments calculated based on range of interest rates and repayment terms offered,
assuming a loan amount of $10,000.
4 Total Annualized Rate shows all costs for one year in a single equivalent interest rate
so that you can make apples-to-apples comparisons.