What quick money actually costs
A factor rate is not a rate. Put in the quote you were handed and see the cost in dollars, the annual rate the way a bank would measure it, and what the draw does to your month.
Illustrative starting values as of 2026-09-07, not a quote. Type in the numbers you were actually given; the arithmetic is the same.
You were quoted a factor rate and a daily or weekly draw.
The advance or loan amount before any fee comes off.
Optional for most products. It turns the draw into a share of your month.
Usually between 1.10 and 1.50. Multiply it by the advance to get what you pay back.
Fill in this or the payment, not both.
The draw the quote names, per day or per week.
Optional. Some quotes take a percent off the advance before it lands.
Your numbers
You pay $30,000 to use $100,000 for 9 months.
Measured the way a bank measures interest, that is 73.0 percent a year. Said the simple way, it is 40.0 percent a year. The gap is the term: you are paying the whole cost on money you hold for less than a year.
The same amount, three ways
Over 9 months. Bank figures are illustrative starting values; a line of credit charges interest only on what you have drawn.
| a month | cost | |
|---|---|---|
| This quote | $14,444 | $30,000 |
| Bank-rate loan | $11,603 | $4,426 |
| Line of credit | $792 | $7,125 |
Spread over a normal 10-year term, the same amount at a bank rate is $1,349 a month.
What happens if you renew at the halfway point
The common offer, once half the payback is in: a new advance on the same terms, with the balance you still owe paid off out of it.
Across both advances you receive $135,000 and pay $195,000. The cost is $60,000, and the second charge lands on $65,000 you had not finished paying for.
The true annual rate is the rate that discounts every payment back to the cash you received, times the number of payment periods in a year. It is how a bank states interest and the only fair way to compare a factor rate to a bank quote.
The way out is a file a bank will read
The reason quick money is on the table is usually that the bank-rate path was not ready. See where you stand against what a lender looks at, in about three minutes, with no credit pull.
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