What moves the number
Monthly deposit volume, and how steady it is. This is the single largest factor.
Time in business. Under a year pushes the rate up; three years or more pulls it down.
Industry. Some trades are priced higher because their default history is higher, regardless of how your own business is performing.
Existing advances. Stacking pushes the rate up sharply where it does not cause an outright decline.
Credit score, which matters far less here than on any other product but is not ignored entirely.
What the rate means in dollars
A factor rate is a multiplier, not an interest rate. At 1.30 you repay 1.3 times what you receive — full stop, regardless of how long it takes.
$50,000 at 1.20 = $60,000 repaid. At 1.30 = $65,000. At 1.40 = $70,000.
That $10,000 spread between 1.20 and 1.40 is the whole reason to compare offers rather than take the first one.
How to compare offers honestly
Compare the total dollar repayment. Not the factor rate, and definitely not the daily payment.
A lower daily payment over a longer term usually costs more in total. It is quoted precisely because it sounds smaller.
Ask every funder the same question: what is the total I repay, in dollars? Any hesitation is information.