They also mention 10 months as the term of the advance, and I think that’s for the same $10k/$11k example. Assuming equal payments of $1,100 every month, that would make the APR about 23%.
There’s an element of equity here because if sales are lower than expected, and it takes 15 months to pay back the advance, the APR ends up at only 16%. If sales are higher than expected, the APR would be higher, 34% for a 7-month period.
There’s an element of equity here because if sales are lower than expected, and it takes 15 months to pay back the advance, the APR ends up at only 16%. If sales are higher than expected, the APR would be higher, 34% for a 7-month period.