It’s unfortunate, but half the battle to finding a small business loan that works for your company is down to simply understanding the nature of the loan you’re applying for.
That’s because while certain borrowing options appear similar on the surface –– loans and cash advances for instance –– they actually function quite differently. As such, figuring out what terms like APR and factor rate mean to your bottom line is essential.
The good news is, NBC’s team of Business Financing Advisors are here to clear up the confusion.
APR is a metric you should certainly pay attention to when applying for a small business loan –– because it’ll tell you the exact amount of cash you owe on a given sum. In the same breath, you also shouldn’t think of a factor rate exactly how you consider a loan.
While similar, they are distinct, and you’ll need to take that into account before you apply for a cash advance. The good news is, you can work to lower the factor rate next time you apply by building a healthy credit score and establishing a thriving business.
If you’re still unsure which route is best for your small business to take to secure necessary funding then relax.
And for more information on how to score finances when the banks say no, download our free eBook here:
National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
Megan Capobianco is the Marketing Manager at National Business Capital & Services. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.