Post by Black Flag Funding

"Factor rate" and "interest rate" are not the same thing, and mixing them up costs business owners money. An interest rate is calculated annually (APR). A factor rate is a flat multiplier on the amount borrowed, applied once, regardless of how fast you pay it back. A 1.3 factor rate on $50K means you owe $65K, period. Knowing the difference changes how you actually compare offers. #BusinessFunding #FinancialLiteracy #SmallBusinessFinance #MCA #BlackFlagFunding