What is a factor rate?
A factor rate is a fixed multiplier, typically 1.15 to 1.50: that determines the total repayment on financing like a merchant cash advance. Unlike an interest rate, the cost never shrinks: repaying early saves you nothing, because the fee was fixed the day you signed. Quordx Capital translates factor-rate offers into real dollar costs and puts cheaper alternatives next to them so you decide with open eyes.
Last updated · Reviewed by Cody Dreis
50+ Lenders|Funding in as little as 24 hours
How factor rates really work, and what they really cost
The math is simple: advance × factor rate = total repayment. The trap is timing. That doesn't make MCAs a scam: it makes them expensive short-term capital that only pencils when the money earns more than it costs, quickly. Honest pricing comparison is the whole defense.
Factor-rate products vs. interest-rate alternatives
Merchant cash advances: $5K-$500K at a factor rate set per deal; fast and credit-flexible, but costly. A tool for specific revenue opportunities, never the default choice.
Working capital loans: $5K-$500K short-term loans with interest pricing that rewards early payoff. Best first comparison against any MCA offer.
Business lines of credit: $10K-$250K+ revolving, interest only on draws. Best for recurring gaps an MCA would overcharge for.
Run the numbers on your loan
Pick a product, set the amount and term, and see a typical payment.
How Quordx Capital Works
After one application of about 10 minutes, Quordx Capital's matching process checks your profile against 50+ vetted lenders, including both factor-rate and interest-rate products, and ranks 3-7 realistic matches by approval probability. Every offer shows total dollars repaid. Decisions usually return within 24-48 hours; some products fund in as little as 1-3 business days.
What to Expect
If an MCA is genuinely your best fit, the cost gets stated in plain dollars before you commit, and if a cheaper structure can work, you'll see it first. Quordx Capital will decline to submit you for a product that's wrong for your situation; that's the policy, not a slogan. Asking is free and obligates you to nothing.
Apply for Funding
No obligation · Initial inquiry doesn't impact credit · Takes about 10 minutes
Written by
Cody Dreis
Founder, Quordx Capital
Read full bio
Related articles
Quordx Capital is a business funding broker, not a lender. Lenders make every credit decision and set the rate, fees and terms, and not every business qualifies. Quordx may be paid by a lender when a deal funds. Full disclosures