Interest Rates

This guide defines term loans, explains their interest structures, compares them to lines of credit, and outlines the specific scenarios where founders should use them to fund operations.

Basis points are a unit of measure for small percentages. This guide explains how to read them and why they matter for interest rates and equity.

Principal is the original sum of money borrowed or invested. Understanding how it differs from interest and how it behaves over time is critical for managing startup cash flow.