HOW OUR FEES WORK
BizLender works with many different types of financing to help get small businesses funded
Factor vs APR
One of the types of funding we secure is Factor-Based which is a little different than the traditional APR that you may be used to, but Factor-Based financing could actually be beneficial to you. Below are a few examples of how Factor-Based funding compares to traditional APR Financing.
|Total Dollar Cost|
|Cost Per Dollar|
|1.22 | Factor|
|132 | Days|
|18% | Interest Rate|
Financing can be a scary proposition for a business owner. Every day business owners make challenging decisions, and making the wrong decision can be harmful. BizLender wants to help you understand the cost of funding and navigate your business through the business funding process.
What Client Say
The Effective APR on the Interest-Based Funding is much lower than that of the Factor-Based Funding. In many financial products, APR is used to normalize the cost of funds to enable borrowers to analyze and compare separate financing options. Yet, as seen in the graphic above, if given just Loan Amount, APR, Term, and Payment Amount as data points, the APR would mask the actual structure of a loan. The business owner would most likely be cautious of taking the Factor-Based funding even though the cost is almost $6,000 less than the Interest-Based funding. In theory, APR is supposed to let the borrower compare multiple financing options, yet, when all the financing products are not interest-based, APR distorts the actual cost.