Loan terms are the amount, rate, length, schedule, fees and collateral in an offer. A card-sales advance is not a loan; the provider collects it from daily card receipts. Amortization moves each payment from interest toward principal.
What Are Small Business Loan Terms? The Answer for Green River, WY Retailers
Terms are everything an offer fixes besides the amount: the annual rate, the length in months, how often payments come due, any origination or other fees, what secures the money, whether an owner signs a personal guarantee, and whether paying early saves interest. Each funding partner sets them, and the offer lists them.
For a Green River, WY retailer, the useful habit is to read terms against the purchase. Shelving or a cooler bank that lasts years fits a term loan with a longer schedule; stock that turns over in weeks fits inventory financing or a line with short draws.
What Is a Merchant Cash Advance? How Card-Sales Collection Works
Not a loan at all: the provider is buying a slice of the card sales the business has yet to make. It pays a lump sum now and collects a fixed total through a holdback, a set share of each day's card receipts, or through a fixed daily or weekly debit. Slow card days mean a smaller collection that day and a longer stretch overall; the total does not change.
The merchant cash advance page works through a full invented example with factor, holdback and daily card sales.
What Is Amortization on a Term Loan? Start With Food Orders
Amortization is the schedule that turns one level payment into two parts: interest on the balance still owed, and principal that brings the balance down. Each month the balance is smaller, so the interest part shrinks and the principal part grows.
A term loan for food orders would be short, because the food is used within weeks. Illustration only, invented figures: the restaurant in this example finances $9,000 of food orders over six months; at an annual rate of 12%, each of its level payments is $1,552.94. Month one splits into $90.00 of interest and $1,462.94 of principal; in month six, only $15.38 of the payment is interest. Add up the interest column and the six months cost $317.61 in interest.
| Month | Payment | Interest | Principal | Balance after |
|---|---|---|---|---|
| 1 | $1,552.94 | $90.00 | $1,462.94 | $7,537.06 |
| 2 | $1,552.94 | $75.37 | $1,477.57 | $6,059.49 |
| 3 | $1,552.94 | $60.59 | $1,492.35 | $4,567.14 |
| 4 | $1,552.94 | $45.67 | $1,507.27 | $3,059.87 |
| 5 | $1,552.94 | $30.60 | $1,522.34 | $1,537.53 |
| 6 | $1,552.91 | $15.38 | $1,537.53 | $0.00 |
Short Answers for Green River, WY Restaurant Owners About Slow-Week Payroll
Kitchens and lodging places with payroll at a ZIP 82935 address numbered 31 in 2023 (ZBP, accommodation and food services), and 22.6% of that ZIP count had fewer than five employees. Short answers for the kitchens among them:
- What covers a slow-week payroll? Working capital for a one-time gap, a line of credit for gaps that repeat, or a card-sales advance if card volume is steady.
- How big is the gap? Illustration only, invented figures: $7,200 of biweekly payroll and a 30-day wait hold 2 or 3 paydays, depending on where the first one falls, so $14,400 to $21,600.
- Does a slow week change what an advance costs? No; it changes how long collection takes.
- What helps on the call? Recent bank statements and the dates payroll goes out.
By Ridgehollow Finance · Updated