Principal

On an amortizing loan, each payment reduces the outstanding principal balance. Early payments are mostly interest; late payments are mostly principal. On a factor-rate product (BCA, revenue-based funding), there is no traditional "principal", the business receives an advance and repays a fixed total (advance × factor), and the distinction between principal and cost is not separately disclosed.

When comparing funding offers, always confirm whether fees are deducted from the principal before disbursement (i.e., an origination fee netting the funded amount) or whether the full principal is advanced and fees are paid separately. The difference affects both your net received amount and your effective APR.