Repayment terms. Defined.

Repayment

ACH Debit

a.k.a. ACH pull, automatic debit

An ACH debit is an electronic withdrawal from a business bank account used to collect fixed daily or weekly loan payments.

Repayment

Amortization

Amortization is the repayment of a loan through scheduled periodic payments that cover both principal and interest.

Repayment

Balloon Payment

A balloon payment is a large lump-sum payment due at the end of a loan after smaller periodic payments.

Repayment

Daily ACH

Daily ACH is a repayment structure where a fixed dollar amount is debited from the business bank account every business day.

Repayment

Debt Consolidation

Debt consolidation is replacing multiple existing business debts with a single new loan, usually to reduce total monthly payment or interest cost.

Repayment

Holdback

A holdback is the fixed percentage of daily credit card or bank deposits automatically withheld to repay a business cash advance.

Repayment

Prepayment Penalty

A prepayment penalty is a fee charged when you pay off a loan ahead of schedule.

Repayment

Refinance

Refinancing is replacing existing debt with new debt at different terms, typically to lower the rate, extend the term, or change the collateral.

Repayment

Workout Agreement

a.k.a. loan modification, forbearance agreement, hardship plan

A workout agreement is a negotiated modification to an existing loan's terms, reduced payments, extended timeline, or temporary forbearance, that a lender agrees to when a borrower is in financial distress.