Funding glossary
Business Funding Glossary
Plain-English definitions for financing terms business owners often see while comparing funding products, documents, repayment structures, and review steps.
Terms before decisions
Use the glossary to understand language in product pages, disclosures, and funding conversations.
A review is not an approval guarantee or an obligation to accept financing. Terms vary by business profile, product type, documentation, and partner criteria.
Definitions
Common business funding terms
Factor rate
A pricing format commonly used in some short-term business funding products. It is different from an annual interest rate and should be reviewed against the total repayment amount.
See related guideHoldback
A repayment mechanism where a percentage of sales or deposits is used to repay certain revenue-based or sales-based financing products.
See related guideDaily repayment
A repayment cadence where payments are collected each business day. It can move quickly but should be compared against cash-flow timing and existing obligations.
See related guideRevenue-based financing
A funding structure where repayment is tied to business revenue or sales activity. Fit depends on revenue consistency, repayment pressure, and product terms.
See related guideBusiness line of credit
A revolving credit product that may allow a business to draw funds as needed, subject to limits, terms, and partner criteria.
See related guideInvoice factoring
A receivables-based option where eligible unpaid invoices can be converted into working capital before customers pay.
See related guideDebt schedule
A summary of existing loans, balances, payments, and payoff details used to understand current obligations and repayment capacity.
See related guideRepayment capacity
The practical ability of a business to manage payments after revenue, expenses, existing obligations, and seasonality are considered.
See related guideReview does not guarantee approval. Terms, timing, and availability vary by profile and partner.