Business Loan Glossary for Saratoga Owners
Terminology can vary by product and provider. Ask the provider to define every term in the agreement and explain how it affects the amount received and repaid.
Pricing terms
Interest rate describes interest charged on principal. APR is an annualized measure that may include certain fees. A factor rate is a multiplier rather than an interest rate and should not be compared directly without calculation.
Security terms
Collateral is property pledged to support an obligation. A personal guarantee may make an owner personally responsible. A UCC filing may establish a lender’s security interest in business assets.
Repayment and performance terms
Amortization is the scheduled reduction of principal over time. Term is the repayment period. Default provisions identify events that trigger remedies. Cash flow reflects money moving into and out of the business.
Ready to discuss a business funding need?
Submit a preliminary inquiry after reviewing the amount, purpose, documents, and potential repayment impact.
Explore funding options