Reference

A plain-English glossary.

The financing terms used elsewhere on this site, defined the way we use them. Cross-references point back to the pages where each term does the most work.

A

APR: Annual Percentage Rate — the all-in yearly cost of borrowing, expressed as a percentage. Our published APR range is 12–49%; the rate you are offered depends on your credit profile and product.
See: Rates & Fees
Acquisition Loan: Financing used to buy an existing business with established cash flow, structured as a term loan with fixed monthly payments. Loan amounts range from $25,000 to $500,000 with terms of 12–60 months.
See: Acquisition Loans
Annual Revenue: The total income a business generates in a year before expenses are subtracted. Our standard threshold is roughly $100,000 in annual revenue or more.
See: Eligibility

B

Bankruptcy: A legal proceeding to reorganize or discharge debts that the borrower cannot pay. An open or recent bankruptcy on a personal or business record affects underwriting and the products available; a discharged or older bankruptcy is read in context.
See: Eligibility

C

Cash Flow: The money moving in and out of a business over a period of time, separate from accounting profit. We read bank statements alongside personal credit when sizing a loan.
See: How It Works
Collateral: An asset pledged as security for a loan, which the lender can claim if the loan is not repaid. Whether collateral is required and what counts depends on the product and loan size.
See: Compare
Credit Score: A numerical reading of a personal or business credit profile, used as one of several inputs in underwriting. Our standard minimum is a 650 personal score, though specific products may have additional requirements.
See: FAQ — What credit score do I need?

D

Debt Consolidation: Replacing multiple existing debts with a single new loan, typically to simplify payments or extend the schedule. A common use of a term loan.
See: Term Loans
Debt-to-Income Ratio: The share of monthly income that goes to debt payments. Used in underwriting to assess whether the business can comfortably service additional financing alongside existing obligations.
See: How It Works

H

Hard Credit Pull: A formal credit inquiry that may cause a small, temporary dip in a personal credit score. We perform a hard credit pull only when a full application is submitted with explicit permission — never at the pre-qualification stage.
Related: Soft Credit Pull

L

Line of Credit: A revolving facility you can draw against as needed, paying interest only on funds drawn. The balance becomes available again as you repay. Lines of credit go up to $250,000.
See: Lines of Credit

O

Origination Fee: A one-time fee for processing a loan, charged as a percentage of the principal and disclosed in the offer document before signing. See the rates page for the current range.
See: Rates & Fees

P

Prepayment Penalty: A fee some lenders charge when a loan is paid off early. We do not charge prepayment penalties — you can pay off your financing ahead of schedule without an additional fee.
See: FAQ — Is there a prepayment penalty?

R

Revolving Credit: A credit structure where the borrower draws, repays, and redraws against the same facility — the line refreshes as it is paid down. Our line of credit is a revolving facility.
Related: Line of Credit

S

Soft Credit Pull: A pre-qualification credit inquiry that does not affect a personal credit score. We use a soft pull at the pre-qualification stage so a borrower can review preliminary terms before deciding whether to proceed. See: Eligibility Related: Hard Credit Pull

T

Term Loan: A loan disbursed as a single lump sum and repaid in fixed monthly payments at a fixed interest rate over a defined term. Our term loans range from $5,000 to $500,000 with terms of 12–60 months.
See: Term Loans

U

Underwriting: The process of evaluating a loan application against credit, cash-flow, and business-profile criteria to decide whether to lend, how much, and on what terms. We underwrite in-house rather than passing the file to a third party.
See: How It Works

W

Working Capital: The cash a business uses to fund day-to-day operations — payroll, inventory, supplier payments — as opposed to long-term capital expenditures. A common use of both term loans and lines of credit.
Related: Line of Credit

Definitions reflect how each term is used by Clear Business Funding. Industry usage may vary — specific contract language always governs.

Ready to apply?

Apply online in minutes and review your terms in writing before signing.

Apply Now Check Eligibility