Understand essential financial terms quickly and easily.
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Advance Rate
The advance rate is the percentage of the total approved funding amount that a business receives upfront. In alternative lending and working capital financing, it represents the portion of capital released immediately based on the merchant’s risk profile, revenue consistency, and overall business performance.
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Balance Sheet
A balance sheet is a financial statement that provides a snapshot of a company’s assets, liabilities, and equity at a specific point in time. It shows what the business owns and what it owes.
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Cash Flow
Cash flow refers to the net amount of cash being transferred into and out of a business. It indicates a company’s ability to generate liquid funds to cover expenses, operate efficiently, and support growth.
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Debt Financing
Debt financing is the process of raising capital by borrowing funds that must be repaid over time with interest. Businesses use debt financing to fund operations, expansion, or cover short-term needs.
