Factor Rate Formula
Factor Rate Formula Break Down
What's Inside the Guide
Everything They Hope You Don't Know
A plain-English breakdown of how business funding really works — from how costs are calculated to what to demand in writing before you sign.
How to Read a Factor Rate
Convert any factor rate to a true cost so you can compare funding offers.
The 7 Questions to Ask Before Signing
The exact questions that reveal hidden costs, prepayment penalties, and renewal terms — before they're locked into a contract.
Types of Funding Explained
MCA vs. term loan vs. line of credit — what each is actually good for and which situations each product fits (and doesn't).
Red Flags That Signal a Scam
A checklist of warning signs that the person you're talking to does not have your best interest at heart.
What Good Funding Actually Looks Like
The standards you should expect from any reputable funder — in writing, before you hand over a single document.
Early Payoff: When It Helps and When It Doesn't
Some products reward early payoff. Others don't — because the full interest is baked in regardless. Know the difference before you commit.
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Red Flags to Watch For
If you're talking to a broker or lender and you notice any of these, stop and ask hard questions — or walk away.
"Don't worry about the details — just sign"
Any person who discourages you from reading the contract is hiding something. Legitimate funders want you to understand what you're signing.
Upfront fees before you receive any money
Legitimate funding companies do not ask for money before funding. If someone asks for an "application fee" or "insurance deposit," it's a scam.
No clear answer on total repayment amount
You should always know the exact dollar amount you'll repay — not just the factor rate. Make sure it's clearly stated upfront.
We Practice What We Preach
We built Purpose Fund around education and transparency. When you work with us, every term gets explained. No surprises, no pressure, no confusion.
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Ready When You Are
Work With Someone Who's Different
Now that you know what to look for, you can see exactly why we built Purpose Fund the way we did. Transparent terms. Honest guidance. No games.
No obligation. No hard credit pull. Funding decisions in as little as 24 hours.