Capchase glossary Capchase glossary

Capchase glossary

CreditCap: The limit on the amount of credit that a company can finance with Capchase. This limit is set during the underwriting process, it is mainly based on the company’s size and performance.

Draw: A draw is a single transaction on your facility. Each time you receive funds from Capchase, that transaction corresponds to a unique draw. Draws may have different terms (in months) and fees from one another, but those terms will be fixed for the duration of a given draw.

Fees: The amount that the lender charges the customer for financing and/or platform access.

KYB (know your business): "Know your business" refers to a key part of the onboarding process where Capchase performs business entity verification, sanctions screening, and other fraud and compliance checks that are either required by law and/or are a part of our platform’s best practices.

Maturity date: The maturity date (or simply "maturity") of a draw refers to the date that the draw is due to be paid in full to Capchase. 

Term: The term of a draw refers to the length of time over which a customer will repay a given draw, i.e. from the payout date to the maturity date.

Principal: The portion of a repayment that is allocated to the original amount lent or disbursed at the time of draw deployment.

Repayment: The amount that the customer pays back to Capchase on a monthly basis, which includes both fees and principal.

Straight-line amortization: Straight-line amortized loans have equal repayments spread across the entire term, which include both fees and principal.

Underwriting: The process by which Capchase reviews and evaluates the creditworthiness of a customer. Underwriting allows Capchase to provide an offer to the customer which will include the total credit capacity, term, and fee.

 

If you have any questions, don’t hesitate to contact us at support@capchase.com.