Glossary

Funding Glossary

Clear definitions for common business funding and real estate funding terms.

Working Capital

Money used for day-to-day business operating needs.

DSCR

Debt Service Coverage Ratio, often used to evaluate rental-property cash flow.

Non-QM

Non-qualified mortgage options for borrowers outside standard guidelines.

Bridge Loan

Short-term financing used to bridge timing or transition gaps.

Bank Statement Loan

A loan option that may use bank deposits as part of income review.

Equipment Financing

Funding used to purchase or replace business equipment.

LTV

Loan-to-value, a ratio comparing loan amount to property value.

DTI

Debt-to-income, a ratio comparing debts to income.

Term Loan

A loan repaid over a defined term.

Factor Rate

A pricing method sometimes used in alternative business funding.

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