The basic calculation
For a simple estimate, multiply the advance amount by the factor rate to calculate total payback. Subtract the amount advanced from total payback to estimate the financing cost before any additional fees.
- $50,000 advance × 1.30 factor rate = $65,000 total payback.
- $65,000 total payback − $50,000 advance = $15,000 financing cost before other charges.
Estimate the payment separately
A rough daily estimate divides total payback by an assumed number of business days. Ventr3’s calculator uses approximately 21 business days per month. Actual payment frequency, remittance calculation, fees, approval, and terms come from the funding provider; this estimate is not a quote.
Do not treat the factor as APR
A factor rate does not express the time-based cost in the same way as an annual percentage rate. The effective cost can depend on how quickly payments are collected and on additional fees. Ask for the total dollars due and compare written terms with other options.
Check the full agreement
Before accepting, confirm the amount delivered, total payback, payment cadence, fees, early-payoff treatment, personal guarantees, and consequences of missed payments. Ask the provider to explain anything unclear.