how to calculate small factor
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You might turn to a business cash advance, sometimes called a merchant cash advance, if your small business is in need of a short-term loan to produce working capital quickly or increase cash flow. You may also choose to take a short-term business loan. All of these alternatives carry a business loan factor rate, which we will be discussing in this article.
Unlike interest rates, which are expressed in percentages, factor rates are usually given in decimal figures. Some lenders will give you the factor rate as a percentage. Factor rates usually vary from 1.1 to 1.5. The rate you get will depend on the length of time you’ve been in business, your industry, the average of your monthly sales, and the stability of those sales.
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