Understanding funding structure
Structure describes the underlying shape of a financing product: whether you are receiving a lump sum, drawing against a revolving facility, advancing against an asset, or selling a receivable. The structure drives almost everything else — pricing, repayment, security, and risk.
What "structure" really refers to
Two funding products with similar dollar amounts can behave very differently once you read the structure. A term loan delivers a fixed lump sum that you repay on a schedule. A line of credit gives you a ceiling you can draw against and repay repeatedly. Equipment financing attaches the funding to a specific asset. Invoice financing advances cash against receivables you have already earned.
We walk you through structure before pricing because the right structure for your situation is what determines whether a financing decision helps or hurts your business over the next 12 to 24 months.
What structure tells you about a financing offer
- Whether funds arrive as a lump sum or are drawn over time
- What the lender's claim is — a general business obligation, a specific asset, or a receivable
- How the structure interacts with your existing obligations and cash flow
- How flexible the product is if your needs change mid-term
What to ask a funding partner
- — Do I need the full amount today, or will I draw against it over time?
- — Is there a specific asset or receivable this financing should be tied to?
- — How does this structure sit alongside any existing debt or merchant advances?
Funding is subject to approval and not all applicants will qualify. Terms, structures, and availability are determined by the funding partner.
Other funding concepts
Repayment
How and when you pay the financing back — daily, weekly, monthly, or as receivables settle — and what that means for cash flow.
Learn moreUnderwriting
What the funding partner actually evaluates to make a decision — revenue, time in business, credit, collateral, customer quality.
Learn moreVariants
The common variations within a single product category — and why two funding partners can structure the same product very differently.
Learn moreTalk through your options with a specialist
No obligation. We'll walk through how structure, repayment, underwriting, and product variants apply to your situation.