Cost terms
| Term | Plain meaning |
|---|---|
| Factor rate | A fixed multiple of the advance. 1.3 on $50,000 means repaying $65,000 |
| APR | Annualised cost of borrowing — useful between similar loans, misleading against a factor rate |
| Holdback | The share of daily card or deposit volume remitted |
| Origination fee | Deducted from what you receive, so you get less than the stated amount |
| Total repayment | Every dollar you return. The only figure that compares across structures |
Liability terms
| Term | Plain meaning |
|---|---|
| Personal guarantee | You are personally liable if the business cannot pay |
| UCC-1 filing | A public claim against business assets; affects later funding |
| Confession of judgment | Waives your right to contest a claim in court |
| Cross-default | Default on one facility triggers default on another |
| Reconciliation | The clause that lets payments adjust when revenue falls |
Structure terms
| Term | Plain meaning |
|---|---|
| Position | Where a funder ranks if things go wrong. Second position costs more than first |
| Stacking | Taking additional funding while an existing facility is open |
| Renewal | Replacing a facility before it is paid off; resets the term and usually total cost |
| Reverse consolidation | A facility that lowers the daily payment and extends the term — it does not pay off existing balances |
| Advance | A purchase of future receivables, not a loan |
The one to be careful with
Reverse consolidation is the term most often misdescribed. It reduces what leaves your account each day and stretches how long you pay. It does not pay off, consolidate or buy out your existing advances, and anyone describing it that way is not describing the product accurately. Full list in the glossary.
Common questions
What is the difference between a factor rate and an interest rate?
A factor rate is a fixed multiple set at the outset. Interest accrues over time and falls as the balance reduces.
What is a holdback?
The percentage of daily card or deposit volume taken as repayment.
Does reverse consolidation pay off my advances?
No. It lowers the payment and extends the term. The balances remain.
Which term should I check first in an offer?
Total repayment in dollars, then the first payment date.
See what you qualify for
Same-day decision. Applying takes a few minutes and will not affect your credit score.