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 1.15-1.50 factors; 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.
How Quordx Capital Works
After one application of about 5 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
More on this topic from the Quordx Capital library.
Important Disclosures
Quordx Capital is a business funding broker, not a lender. We facilitate introductions between U.S. small and medium-sized businesses and lenders or capital providers in our network. All credit decisions, funding amounts, rates, fees, repayment terms, and timelines are determined solely by individual lenders based on their own underwriting criteria.
Funding figures and timelines shown on this page are illustrative and represent ranges within our lender network, they are not guarantees and individual outcomes may vary based on business profile, industry, time in business, revenue, credit history, and lender availability. Not all applicants qualify for every product.
The initial inquiry does not impact your personal credit score. Some lenders may perform a hard credit pull during underwriting; Quordx only authorizes such checks with your specific consent for the lender presenting an offer. Applicants are protected under the Equal Credit Opportunity Act (ECOA) from discrimination based on race, color, religion, national origin, sex, marital status, age, or because all or part of an applicant's income derives from any public-assistance program.
This Site is intended for commercial, business-purpose financing for U.S. businesses only. Not available for consumer loans, residential mortgages, or owner-occupied real estate. Quordx may receive compensation from lenders when applications result in funded transactions. This does not change the rate, fee, or terms offered to you. See our Advertiser Disclosure for details.
By submitting an application or contact information, you consent to be contacted by Quordx and its lending partners via phone, text, and email, including by automated means, regarding your funding inquiry. Consent is not a condition of receiving funding. Message and data rates may apply. Reply STOP to opt out. See our Privacy Policy and Terms of Service.