Buy Rate
The lowest factor rate or cost a funder will offer on a deal before a broker's commission is added on top, effectively the funder's wholesale price.
A broker working with a funder typically has room to mark up the buy rate before presenting an offer to the business, with the difference between the buy rate and the final offered rate representing the broker’s compensation on the deal.
Understanding that a buy rate and a final offer aren’t the same thing is useful context when comparing offers from different brokers or funders, since two quotes with different final rates could be built on a similar underlying buy rate with different markups.
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