The advertised rate rarely tells the full story. Factor rate lenders like OnDeck express cost as a multiplier (e.g., 1.25x of borrowed amount) rather than APR, which makes true cost comparison harder. Always convert to APR before comparing. A 1.25 factor rate on a 12-month term loan is roughly 50% APR — dramatically different from the 29.9% floor that OnDeck lists in its headline range.
This is a companion discussion topic for the original entry at https://pickly.blog/en/articles/best-small-business-loan-2026/