A factor rate is the price of most merchant cash advances, written as a decimal such as 1.35. Multiply the advance by it and you get the total the funder collects. The cost is set in dollars at signing, and paying early does not reduce it unless the contract includes an early payoff discount.
A factor rate is not an interest rate and not an APR. A 1.35 factor looks like 35%, but you repay in daily or weekly installments that start almost at once, so you hold the full amount only briefly. The annualized cost ends up far higher than the factor rate suggests.
Example: $50,000 at a factor rate of 1.35 means a payback of $67,500 and a cost of $17,500. Repaid over 8 months (168 business days), that is $401.79 per business day and an estimated APR of about 95%.
Compare factor-rate offers on the dollar cost and the estimated APR together. The offer decoder shows both.