APR (Annual Percentage Rate)
The yearly cost of funding, expressed as a percentage, including interest and certain fees.
APR (Annual Percentage Rate) represents the total yearly cost of borrowing, expressed as a percentage of the amount funded. Unlike a simple interest rate, APR can include certain fees and charges, giving a fuller picture of what funding actually costs over a year.
APR is most useful for comparing similar types of financing against each other. Because different funding types (like a term loan versus a merchant cash advance) are structured differently, APR comparisons across very different products can be less meaningful.
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