Funding costs can vary significantly across ecommerce financing products, making it important to look beyond headline rates. A lower factor rate for an RBF or MCA product does not necessarily mean a lower cost of capital. For example, while a factor rate may appear attractive at first glance, the percentage of sales fixed fee structure can translate into APRs of approximately 15%–40% for revenue-based financing and 40%–150% for merchant cash advances, especially if you want to repay earlier. Furthermore, repayment schedules tied to future sales can make the true cost and timing less predictable.

In comparison, CrediLinq’s line of credit with a 1.5% monthly service fee would translate to a simple fixed APR of 18%, and repayment is made in fixed, predictable installments.

For high-growth ecommerce sellers funding inventory purchases, supplier payments, advertising spend, marketplace expansion, and cross-border growth, cost of capital is not a one-time consideration. 7 to 8-figure sellers build systems around capital. They know exactly how much they need, when they need it, and what it costs.

CrediLinq is designed for professional sellers operating across multiple channels and markets, offering transparent pricing, flexible use of funds, and a rolling line of credit — providing a more predictable and sustainable way to finance growth.