Factor rate to APR calculator
When securing financing for your business, it's crucial to know the true cost of the loan beyond just the factor rates and fees. Our APR Calculator helps you convert these rates into an annual percentage rate (APR), giving you a clear picture of the actual costs involved. This transparency empowers you to make informed decisions, weighing the opportunity cost against the expense of the facility. At Business Score, we connect businesses to 100+ lenders through one seamless application process.
IMPORTANT: These calculations are estimates only and do not constitute an offer or financial advice. They may rely on assumptions that don't apply to your specific business situation. All applications are subject to approval and the terms and conditions of the finance provider.
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Understanding Different Types of Interest Rates
1
Factor rate
Factor rates are represented as a decimal figure, such as 1.3 or 1.5, rather than a percentage. The total interest cost is applied to the principal amount at the time the loan or advance is originated. Note: While additional fees aren’t included in the factor rate, they are factored into the APR.
2
Annual Percentage Rate (APR)
The Annual Percentage Rate (APR) is the yearly cost of borrowing, expressed as a percentage. It provides a comprehensive view of the loan's cost by including the frequency of compounding, as well as all fees and charges.
3
Interest rate
The Interest Rate is the annualised percentage charged by the lender on the principal. Unlike the APR, it does not account for the compounding frequency or any additional fees and charges.
Compare Financing Products with Business Score
Compare Financing Products with Business ScoreAt Business Score, we believe in fair, fast, and simple funding. Before committing to any financing for your small business, take advantage of our platform to compare different finance products and lenders. Our seamless API integrations support instant offers, making it easier than ever to find the best option for your business.
“Their communication was clear and frequent, keeping us in the loop at every stage. This funding has made a massive impact in our operations, allowing us to expand and better serve our customers . A huge thank you to the Business Score team for their dedication and for making what seemed impossible, possible!”
Olabisi Popoola, Busines Founder
