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BUSINESS FINANCING GLOSSARY

Covenant

A condition written into a loan agreement the borrower must meet — e.g. maintaining a minimum DSCR. Breaking one can trigger default even if payments are current.

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Related terms

Origination Fee→An upfront fee a lender charges to process and fund a loan, usually a percentage of the amount. It’s baked into the APR.Prepayment Penalty→A fee for paying a loan off early, charged to recover interest the lender expected. Many small-business loans have none — check the terms.Side-by-Side Offers→Competing loan offers presented together so you can compare rate, term, and total cost at a glance — the core benefit of applying through a marketplace.

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