Run your numbers
From daily payment to monthly cost
A business-day payment times about 21.67 gives a monthly equivalent you can compare with rent, payroll and other offers.
A payment that looks small per day can be a large monthly commitment. Test it against your slowest month, not your average. See daily vs. weekly vs. monthly payments.
What the rough APR shows
Factor-rate pricing repaid over months has a much higher annualized cost than the factor suggests; the rough APR helps you compare it with loans.
The rough APR here assumes steady payments over the term and is an approximation. See what a 1.3 factor rate costs and revenue-based financing.
Frequently asked questions
Do payments change if sales drop?
With true revenue-based financing the remittance follows sales; with a fixed daily payment it does not. Check which structure the offer uses.
Is weekly better than daily?
Weekly can be easier on cash flow management; the total cost is the same if the factor rate and term are the same.