Retail and E-commerce Business Loans: Inventory, Marketing, and Growth
How retailers and online stores fund inventory, peak-season demand, and marketing campaigns.
· 3 min read
DEFINITION
A factor rate is a decimal multiplier, such as 1.2, used to calculate the total repayment on a merchant cash advance.
Multiply the advance by the factor rate to get the total payback: $40,000 × 1.2 = $48,000. Unlike interest, the cost is fixed regardless of how quickly you repay.
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Guides that explain it further
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