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Simple Interest Loans vs Factor Rates

Posted by jnickell

Please tell me you don't think IOU Central and our 'OwnerCentric' lending product is a factor rate product?!?! A factor rate sets a fixed amount a borrowing business is a locked in to repay. You borrow $50,000 the factor rate is 1.38 the borrowing business repays $69,000. The tough part is that is figured to be within about 7-8 months. This is almost regardless of your credit scores. Depending on the risk, a qualifying borrower getting $50,000 at IOU only pays between $8,000 - $12,500....OVER 12 MONTHS. An simple interest rate comes with a rate but every day you make a payment you reduce the amount you pay interest on. AH HA! This is why our interest rate loans come at a much "lower cost to borrow' than any factor loan. The other "catch" is most of our loans are 12 mos and set a lower payment than any slow day on a factor loan. We all know small business have their "busy" days to match up those slow days. How about having to cough up 20% of your credit card sales on Super Bowl Sunday or Black Friday? Wow! AND...we don't have a fixed set amount of repayment. AND...we don't have a prepay penalty AND...we don't build ANY extra fees into our payment If you ever need to check a payment and to compare a cost on dollar at IOU you use our Loan Calculator at this link. We Dare you to Compare!

Tag Small business loans