FF
FairlyFunded
2025-12-21

What is a factor rate?

How factor rates work, how payback is calculated, and what to ask before you sign.

A factor rate is a multiplier applied to the amount you receive. For example, a 1.30 factor rate on $100,000 means a total payback of $130,000.

Unlike APR, a factor rate does not include time. The time you take to repay changes the effective annualized cost a lot.

Before you accept an offer, ask for the total payback, the estimated term, the holdback percentage, and all fees itemized.

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