Amortizing Loan
An amortizing loan is a type of loan that requires regular payments over a specified period, where each payment consists of both principal and interest. In a fully amortizing loan, the entire principal balance is paid off by the end of the loan term. An amortizing loan with a balloon payment will have a large remaining balance at the end of the term — typically much larger than the monthly payments made throughout the term — that the borrower must pay.
Amortizing loans have a fixed payment schedule, meaning the borrower pays the same amount each month (or according to the agreed-upon payment frequency) throughout the loan term. This repayment structure helps borrowers gradually reduce their debt while making predictable monthly payments.
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.
Amortizing Loan
An amortizing loan is a type of loan that requires regular payments over a specified period, where each payment consists of both principal and interest. In a fully amortizing loan, the entire principal balance is paid off by the end of the loan term. An amortizing loan with a balloon payment will have a large remaining balance at the end of the term — typically much larger than the monthly payments made throughout the term — that the borrower must pay.
Amortizing loans have a fixed payment schedule, meaning the borrower pays the same amount each month (or according to the agreed-upon payment frequency) throughout the loan term. This repayment structure helps borrowers gradually reduce their debt while making predictable monthly payments.
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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.
