What’s the difference between an advance and a term loan?

Advances offer sales-based payments, while term loans have fixed payments.

Sales-based payments vary depending on your sales. If you have more sales, you’ll pay more. If you have fewer sales, you’ll pay less. If you don’t make any sales at all during a sales period, you won’t have a payment for that corresponding period.

Fixed payments happen on a regular schedule and the amount typically does not vary. Knowing exactly how much you owe for any given payment period and how long it will take you to pay off the loan can make it easier to plan your finances.

Other than that, the financing details may also vary depending on the product and based on a business’s risk profile.
 

All loans are issued by Celtic Bank. All loans and offers are subject to credit approval, identity verification, and are subject to periodic review and may change without notice. Bank transfers are subject to review.

Loans are governed by the Loan Agreement and Parafin’s Privacy Policy. Bank transfers are subject to review.