Look beyond the factor rate.
A factor rate can be a useful starting point. It does not tell you the complete cost of financing—or whether an offer works for your business.
Separate the headline amount from the net proceeds
Start with the purchase price and subtract fees, deductions, and any payoff amounts withheld at funding. The result is what your business can actually use. Two offers with the same headline amount can deliver different usable proceeds.
Understand a factor rate
In a simplified example, a $100,000 purchase price at a 1.30 factor produces a $130,000 purchased amount. The $30,000 difference does not include additional fees. These numbers are illustrative only and do not represent Endeavor pricing or an offer.
A factor rate is not an APR
A factor rate does not express annualized cost. Timing, cash-flow patterns, fees, and the amount actually received all matter when comparing financing. Do not interpret a 1.30 factor as a 30% APR. Review any applicable standardized disclosures and ask for help comparing offers on consistent assumptions.
Look at the effect on operations
Review the scheduled remittance, frequency, and reconciliation process alongside ordinary operating expenses and existing obligations. Model lower revenue as well as expected revenue so you can see how much room remains in your cash flow.
Read beyond the price
Review all fees, deductions, default provisions, security interests, guarantees, and early completion terms. Paying early may not reduce the purchased amount unless your agreement expressly provides for it. Ask for clarification before making a commitment.