Initial Balance
The initial balance on a business loan is the total amount of money that the borrower receives when the loan is first issued, or the starting principal amount. This is the amount that the borrower agrees to repay, plus any applicable interest, over the loan term.
The initial balance is the base amount on which interest is calculated and repayment schedules are determined. In an amortizing loan, for example, the balance decreases over time as the borrower makes payments and interest is charged on the remaining balance.
In term loans, the borrower receives the entire loan amount upfront, and that amount becomes the initial balance. In revolving credit lines, loans with multiple disbursements, or loans with multiple tranches, the initial balance may be smaller if the borrower doesn't take the full loan amount immediately.
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.
Initial Balance
The initial balance on a business loan is the total amount of money that the borrower receives when the loan is first issued, or the starting principal amount. This is the amount that the borrower agrees to repay, plus any applicable interest, over the loan term.
The initial balance is the base amount on which interest is calculated and repayment schedules are determined. In an amortizing loan, for example, the balance decreases over time as the borrower makes payments and interest is charged on the remaining balance.
In term loans, the borrower receives the entire loan amount upfront, and that amount becomes the initial balance. In revolving credit lines, loans with multiple disbursements, or loans with multiple tranches, the initial balance may be smaller if the borrower doesn't take the full loan amount immediately.
For more than a decade, Lighter Capital has invested in helping early-stage tech startups succeed on their terms. Explore our small-but-mighty (and always expanding) library of founder resources to level-up your financial IQ, fine-tune your growth strategies, and lead your startup towards a lucrative exit.
Explore More Financial Resources In Our Founders' Hub
“When the time was right for us to make a move in the market, Lighter Capital was an easy way for us to get the growth funding we needed without diluting our control. Working with Lighter Capital has been a great experience.”
Mark Bania, Contractor Compliance CEO & Co-Founder
Why Choose Lighter Capital?
Lighter Capital is the largest provider of non-dilutive debt capital to start ups. Over the past decade, we’ve invested hundreds of millions of dollars into growth companies.
500+ Companies Funded
$350M+ Invested
1,000+ Rounds of Funding
100+ Startup Community Members
Get Capital to Grow. Keep Your Equity.
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.
