Terms that change what you pay
| Term | What it means | Why it matters |
|---|---|---|
| Factor rate | A fixed multiple of the advance, e.g. 1.3 on $50,000 means repaying $65,000 | Not an interest rate; does not reduce if you repay early unless stated |
| Holdback | The percentage of daily card or deposit volume remitted | Decides how much cash leaves daily, independent of the total |
| Origination fee | Deducted up front from what you receive | You receive less than the stated amount |
| Total repayment | Every dollar you will return | The only figure that compares offers cleanly |
Terms that change what you are liable for
| Term | What it means |
|---|---|
| Personal guarantee | You are personally liable if the business cannot pay |
| UCC filing | A public notice of a claim against business assets; can affect later funding |
| Confession of judgment | A waiver of your right to contest a claim in court — read very carefully |
| Cross-default | A default on one facility triggers default on another |
A personal guarantee is normal and usually unavoidable in this market. A confession of judgment is not the same thing and deserves separate attention before you sign.
The four questions to ask every time
Where to check the numbers
Run the figures before you sign, not after — the factor rate calculator and payoff calculator both work without an application. Full definitions are in the glossary.
Common questions
What is a factor rate?
A fixed multiple applied to the amount advanced, set at the start, rather than interest accruing over time.
Is a personal guarantee normal?
Yes, in this market it is standard. A confession of judgment is a different and more serious clause.
What does a UCC filing do to me?
It publicly records a claim against business assets and can affect your ability to obtain further funding.
Does repaying early save money?
Sometimes. Some agreements discount it, others fix the total. Ask before signing.
See what you qualify for
Same-day decision. Applying takes a few minutes and will not affect your credit score.