Step 1: Total payback
Factor rates usually run from about 1.18 to 1.45. On a $50,000 advance:
| Factor rate | Total payback | Cost in dollars |
|---|---|---|
| 1.18 | $59,000 | $9,000 |
| 1.25 | $62,500 | $12,500 |
| 1.30 | $65,000 | $15,000 |
| 1.38 | $69,000 | $19,000 |
| 1.45 | $72,500 | $22,500 |
Step 2: The dollar cost
This is the number to weigh against what the funding will earn. A factor rate is a fixed cost: it doesn't compound, and it doesn't grow if a payment lands a day late on the calendar.
Step 3: Your payment
| $65,000 payback | Number of payments | Each payment |
|---|---|---|
| Daily, 6 months | 126 business days | ≈ $516 |
| Daily, 9 months | 189 business days | ≈ $344 |
| Weekly, 9 months | 39 weeks | ≈ $1,667 |
| Weekly, 12 months | 52 weeks | $1,250 |
To see it as a monthly figure, multiply a daily payment by about 21 business days, or a weekly payment by about 4.33. $344 a day is about $7,220 a month.
Step 4: What actually reaches your account
If an offer includes a $1,500 fee on $50,000, you receive $48,500. If you're renewing and part of the new advance pays off your current balance, the net is lower again. Always compare the net amount with the total payback.
Step 5: Early payoff
Some agreements reduce what you owe if you pay off early; others fix the payback regardless of timing. If paying early is in your plans, ask about it before you sign. Your offer and contract say exactly how it works.
What about APR?
Some states require an estimated annual percentage rate on commercial financing offers, and Bylt Capital shows one where required. Because an advance runs months rather than years, the annualized figure looks high next to a bank loan: the example above works out to roughly 73% estimated APR over 9 months. The dollar cost is still $15,000. Both views are useful: APR for comparing products of different lengths, dollars for deciding whether the funding pays for itself.
Is the cost worth it? A quick test
Compare the dollar cost with what the funding earns or saves over the same period:
- A restaurant uses $50,000 to reopen a second line that adds $12,000 a month in gross profit. Over 9 months that's $108,000 against a $15,000 cost.
- A distributor takes a 12% supplier discount on a $60,000 order, saving $7,200, and turns the stock in 45 days.
- A contractor covers payroll to start a $150,000 job that pays in 60 days.
Examples are illustrations, not offers or promises of results.
Comparing offers
- Line up net funding, total payback and dollar cost.
- Check the payment against your slowest month of deposits, not your best.
- Look at how long it runs and when you'd be eligible to renew.
- Ask about fees and early payoff.
Your Bylt Capital portal shows every offer side by side with all of these figures, so you can choose without a sales call. Already paying advances elsewhere? Add them to the free Advance Tracker to see your total balance and monthly payments before you take on more.