I don't really get how they arrive at their numbers but on first glance it looks insane. On the $10k loan with the $1,300 fee. If you had daily sales of $1,000 you'd pay the loan off in 100 days making the APR somewhere around 50%.
They are frequently fee-based, not rate based. And are frequently less than a year with the rate being highlighted, not the APR.
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Generally interest is annualised and measured in APR.
Actually, on these types of loans, generally not.
For example: https://squareup.com/capital
I don't really get how they arrive at their numbers but on first glance it looks insane. On the $10k loan with the $1,300 fee. If you had daily sales of $1,000 you'd pay the loan off in 100 days making the APR somewhere around 50%.
They are frequently fee-based, not rate based. And are frequently less than a year with the rate being highlighted, not the APR.