6 min read
Written and reviewed by the Emporium Capital Hills Funding Team
Business financing specialists · Lake Forest, CA 92630
Our content is written and reviewed by the Emporium Capital Hills funding team — the same specialists who walk business owners through applications, lender documentation requests, and financing structures every business day. Guides explain how financing generally works and what lenders typically review. They do not promise approval, amounts, rates, or terms, because those decisions belong to the lender.
- Austin · Funding Specialist
- Daniel · Funding Specialist
Content is reviewed for accuracy and compliance before publication and updated when process or documentation expectations change.
Cost and pricing terms
These terms describe what financing costs and how that cost is calculated.
- Annual percentage rate (APR) — annualized cost of financing including certain fees
- Factor rate — a multiplier used in receivables purchase arrangements; not an interest rate
- Origination fee — a fee charged to establish the financing, often deducted at funding
- Prepayment penalty — a charge for repaying before the scheduled maturity
- Total dollar cost — the full amount repaid over the life of the arrangement
Structure terms
These describe how the financing is arranged and repaid.
- Term — the scheduled length of the repayment period
- Amortization — the schedule by which principal is repaid over time
- Revolving facility — an arrangement allowing repeated draws up to a limit
- Draw period — the window during which funds may be drawn
- Balloon payment — a large final payment due at maturity
Risk and security terms
These describe protections a lender may require.
- Collateral — assets pledged to secure the obligation
- Personal guarantee — an owner's personal promise to repay if the business does not
- UCC filing — a public notice of a security interest in business assets
- Covenant — a condition the borrower agrees to maintain
- Default — failure to meet the agreed terms, triggering remedies
Process terms
These appear during application and underwriting.
- Underwriting — the lender's evaluation of the request
- Soft inquiry — a credit check that does not affect scores
- Hard inquiry — a credit check that may affect scores
- Debt service coverage ratio — cash flow available relative to debt payments
- Time in business — how long the business has operated, often measured from formation
Ready to explore your options?
Take the two-minute eligibility quiz to see which financing structures may fit, or start a secure application and speak with a funding specialist. Applying does not obligate you to accept any offer.
This guide is general information and not financial, tax, or legal advice. Emporium Capital Hills is not a lender or a bank. We help business owners explore financing options through a network of lending partners. Financing availability, amounts, rates, and terms depend on each lender's criteria and are not guaranteed. Nothing on this website is an offer or commitment to lend.