Why do small business lenders avoid talking about APR?

Many small business alternative lenders don’t advertise or quote an interest rate. Why don’t alternative small business lenders talk about APR? Factor rates (a preferred measure of costs) can be easier to understand, and many small business lenders argue are a better measure of the cost of borrowing. When small businesses find out what the “APRs” are on the loans, they are much less likely to move forward with the transaction.