Amortization
Amortization is the process of gradually paying off a debt over time through regular payments. Each payment typically covers both the principal (the original amount borrowed) and the interest on the loan.
In a mortgage, for example, your monthly payments start out with a larger portion going toward interest and a smaller portion going toward the principal. Over time, as the principal balance decreases, more of your payment goes toward paying down the principal.
Financial Glossary
Use Lighter Capital's glossary to understand common terms used in finance and investing, so you can build financial literacy and make informed decisions for your startup.
Amortization
Amortization is the process of gradually paying off a debt over time through regular payments. Each payment typically covers both the principal (the original amount borrowed) and the interest on the loan.
In a mortgage, for example, your monthly payments start out with a larger portion going toward interest and a smaller portion going toward the principal. Over time, as the principal balance decreases, more of your payment goes toward paying down the principal.
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Lighter Capital's non-dilutive financing provides startups with a quick upfront injection of growth capital based on the business's recurring revenue streams. That means you get to keep your equity and control of the business, and your loan payments are right-sized to what the business can support. Our financing also scales with you as you grow. Apply online to find out how much you may qualify for.
