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.


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