Every funding term, in plain English.

How a loan is paid down over time. Early payments are mostly interest; later ones are mostly principal.

The true yearly cost of borrowing, including interest plus most fees. The single best number for comparing two offers apples-to-apples.

A snapshot of what your business owns and owes at a point in time — assets, liabilities, and equity.

A large lump sum due at the end of a loan after smaller regular payments. Lowers monthly cost but requires planning for the final payment.

Financing underwritten primarily from your business bank statements rather than tax returns — faster, with less paperwork.

Short-term financing that covers a gap until longer-term funding or expected revenue arrives.

A credit profile tied to your business rather than you personally, tracked by bureaus like Dun & Bradstreet, Experian, and Equifax.

A revolving limit you draw from as needed, paying interest only on what you use. Ideal for recurring or unpredictable cash needs.

A Community Development Financial Institution — mission-driven lenders that serve startups and underserved businesses with flexible criteria.

An asset (real estate, equipment, receivables) pledged to secure a loan. The lender can claim it if you default.

The share of your available credit you're using. Lower utilization (under ~30%) helps your score.

A unique business identifier from Dun & Bradstreet used to build and track your business credit file.

Failing to meet the loan agreement — typically missed payments. It can trigger collateral claims and damage credit.

Your cash flow divided by your debt payments. A 1.25× DSCR means you generate $1.25 for every $1 of debt service. Most lenders want 1.15–1.25× or higher.

Your business's federal tax ID — the equivalent of an SSN for your company. Required for most funding.

A loan or lease used to buy business equipment, where the equipment itself usually secures the financing.

A decimal (like 1.30) used to price merchant cash advances. Multiply it by the amount borrowed to get total payback — it's not an interest rate, and it usually hides a high APR.

The Small Business Scoring Service score (0–300) many lenders — and the SBA — use to screen business loan applications.

A credit check tied to an application that can temporarily lower your score. Too many in a short window is a red flag.

The fixed percentage of daily card sales an MCA provider withholds toward repayment.

Selling unpaid invoices to a financier at a discount for immediate cash. The invoices themselves are the collateral.

The date a loan is fully due. Longer maturities lower the monthly payment but usually raise total interest.

A lump sum repaid by remitting a fixed amount or percentage of daily/weekly sales. Fast and easy to qualify for, but often the most expensive money available.

Smaller SBA-backed loans (up to $50k) issued through nonprofit intermediaries — friendlier to startups and thin credit files.

An upfront fee a lender charges to process and fund your loan, often 1–5% of the amount — sometimes deducted from your proceeds.

A summary of revenue, costs, and profit over a period. A core document lenders request.

A 300–850 score summarizing your personal credit risk. Still a major factor in most small-business lending decisions.

A promise that you'll personally repay the loan if your business can't. Standard on most small-business financing.

A fee some lenders charge if you pay the loan off early, designed to protect their expected interest. Always ask whether one applies.

A benchmark interest rate banks use as a baseline. Most variable SBA and bank loans are priced as prime plus a lender spread.

Funding repaid as a percentage of revenue, underwritten more on your sales than your credit score. Useful for thinner or rebuilding credit.

Long-term, fixed-rate financing for owner-occupied commercial real estate and major equipment, structured through a CDC and a bank.

The SBA's flagship, most flexible program — up to $5M for working capital, acquisition, refinancing, equipment, or real estate. Partially guaranteed by the government.

A credit check that doesn't affect your score — used for pre-qualification and offers. Our pre-qual is a soft pull.

Taking multiple cash advances or loans at once. It compounds cost and risk fast, and many lenders prohibit it.

A lump sum repaid over a fixed schedule at a set rate. Best for a single, known purpose like an expansion or acquisition.

A non-binding summary of a proposed loan's key terms — amount, rate, fees, and structure — before final documents.

How long your company has operated. Many lenders want 1–2+ years; newer businesses lean on startup-friendly programs.

A legal claim a lender files against your business assets to secure a loan. A 'blanket' UCC lien covers all assets.

The lender's process of evaluating your credit, cash flow, time in business, and documents to decide whether — and how much — to lend.

A clear statement of exactly what you'll spend the money on. Lenders weigh this heavily, especially for SBA loans.

Funding used for day-to-day operations — payroll, inventory, rent — rather than long-term assets.