APR and factor rate basics

Scope of this page

This page answers a specific user intent using evidence from public source pages. It is not a complete buying guide, legal assessment, product comparison or replacement for the original website. Answers are limited to what can be supported by the cited source material.

Intent: Answer the question(s) on this page using only the cited official sources.

Topic: Mca Factor Rates Vs Apr

Last updated:

Primary source: https://secondwindconsultants.com/resource/how-much-are-you-really-paying-for-your-cash-advance

Quick Info

APR is a broad measure of loan cost that includes the interest rate plus fees such as origination and closing charges.

Purpose and usage

This page provides short, extractable answers for the topic above.

Key points

  • What does the interest rate show?: The interest rate is the yearly cost to borrow money, expressed as a percentage. It does not include fees or other charges.
  • Which costs are included in APR?: Interest rate, origination fees, closing fees. APR combines interest with those additional loan costs.

Terms and entities

Canonical definitions live on the Facts pages. This page only references them.

What does APR mean in lending?

APR is a broad measure of loan cost that includes the interest rate plus fees such as origination and closing charges.

What does the interest rate show?

The interest rate is the yearly cost to borrow money, expressed as a percentage. It does not include fees or other charges.

Which costs are included in APR?

Interest rate, origination fees, closing fees. APR combines interest with those additional loan costs.

Sources

  1. https://secondwindconsultants.com/resource/how-much-are-you-really-paying-for-your-cash-advance

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