The fastest money available to a small business, and the most expensive. Repaid as a fixed daily or weekly draw against revenue.
This isn't priced like a loan. Rather than charging interest, the funder buys a slice of your future revenue at a discount, using a factor rate. At a 1.35 factor on $100,000, you receive $100k and repay $135,000 — collected automatically, usually daily or weekly, over roughly six to twelve months.
A 1.35 factor is not 35% interest. Because you repay from day one and never have use of the full amount for the full term, a 1.35 factor over nine months works out to roughly 70–90% APR. Shorter terms push it higher. The arithmetic is here.
When the money turns fast and the return is measurable. Inventory you'll sell in 60 days. A deposit that unlocks a contract worth several times the cost. Equipment repair that gets a revenue-generating asset back online this week. The test is whether the thing you're buying produces cash before the advance is repaid.
When it's covering a structural problem rather than a timing one. If revenue is declining and you take an advance to make payroll, the daily draw accelerates the decline — you've added a fixed obligation to a business that couldn't meet its existing ones. That's the path that ends in a second advance, then a third. See the guide on stacking.
What's the total payback amount, in dollars? What's the daily or weekly draw? Is there a discount for early payoff, and is it real? Is there a personal guarantee? What happens if revenue drops — does the payment adjust, or is it fixed?
| Time in business | 6+ months |
| Monthly revenue | $15k+ |
| Credit | 500+ |
| Collateral | Not required |
| Typical cost | 1.2–1.5 factor rate |
| Speed to funding | 1–3 days |
These are typical floors, not offers. Lenders vary.
Answer four questions and see which funding options fit your business — and the criteria behind each one.