In business funding, 1 point is 1% of the funded amount. A broker earning 5 points on a $40,000 advance is paid $2,000. The funder pays the commission, but where that money comes from matters to you.
Points can be paid from the funder's margin at its standard price, or they can be added to your price, so the factor rate you are offered sits above the funder's buy rate. On the same $40,000, raising the factor rate from 1.30 to 1.35 adds $2,000 to your payback.
Ask every broker how it is paid on your deal and whether its compensation changes your price. Openbook Capital tells you how it is paid on your deal, and every offer it shows includes its full cost.