APR
Annual Percentage Rate is a standardized annualized cost measure used for many credit products. Not every commercial financing structure is priced or disclosed as an APR.
FINANCING GLOSSARY
Plain-English business financing terms.
Financing gets harder to compare when every document uses a different set of terms. This glossary is meant to give owners a practical starting point before they review an offer.
Asset-based lending
Financing in which eligible business assets—such as receivables, inventory, or equipment—help support the available facility.
Borrowing base
A formula used in some asset-based facilities to calculate how much can be borrowed against eligible collateral.
Collateral
Business or personal assets that may secure an obligation, subject to the actual financing agreement.
Covenant
A requirement or restriction in a financing agreement, such as maintaining certain financial conditions or providing periodic reporting.
Factor rate
A pricing method often used with merchant cash advances. The funded amount is multiplied by the factor to determine a stated payback amount; it is not the same thing as an APR.
Lien
A legal claim or security interest against property or business assets, depending on the transaction and applicable law.
Merchant cash advance (MCA)
A commercial financing structure generally based on the purchase of a portion of future business receivables rather than a traditional installment loan.
Origination fee
A fee that may be charged to process or originate financing. Whether one applies depends on the product and provider.
Personal guarantee
An agreement that can make an individual personally responsible for certain business obligations. The exact scope depends on the contract.
Prepayment
Paying off an obligation before its scheduled end. Some products reduce future cost when prepaid; others may have fixed cost or prepayment provisions.
Receivables
Amounts customers owe a business for goods or services already provided.
Revolving credit
Credit that can generally be drawn, repaid, and drawn again up to the available limit, subject to the agreement.
Term loan
A lump-sum loan repaid over an agreed schedule or term.
Underwriting
The review process used to evaluate the business, transaction, risk, documents, and eligibility before final approval or terms are issued.
Working capital
Money available for day-to-day business operations, such as payroll, inventory, rent, marketing, and other operating needs.
NEED CAPITAL QUICKLY?
Move on the opportunity without waiting on a bank-length timeline.
Tell us what the business needs and how soon you need it. When a faster structure fits, Titan can prioritize fast-track options while keeping the cost and repayment picture clear.
Fast funding is not guaranteed. Timing depends on eligibility, underwriting, complete documentation, provider availability, bank processing, and the financing product selected.