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BUSINESS FINANCING GLOSSARY

Buy Rate

In an MCA, the base factor rate a funder sets before any broker markup. The difference between the buy rate and your rate is the broker’s commission.

Go deeperFactor rate vs. APR ▸

Related terms

Total Cost of Capital→Everything you’ll pay for financing — interest, fees, and any holdbacks — over the full life of the deal, not just the rate. The number that actually matters.Factor Rate→A pricing multiple (e.g. 1.25×) used for MCAs and some revenue-based financing instead of an interest rate. You repay the advance times the factor — convert it to APR to compare honestly.

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