Funding glossary
Debt & loans terms
Every debt & loans term in our startup funding glossary, explained in plain English for Indian founders. 9 terms.
Collateral-free loanA business loan extended without requiring the borrower to pledge any asset as security against default.Learn more Credit Guarantee Scheme for Startups (CGSS)A government-backed guarantee scheme that covers lenders against default risk when they extend collateral-free loans to DPIIT-recognised startups.Learn more Invoice discountingA facility where a business sells unpaid invoices to a financier at a discount to receive immediate cash instead of waiting for customer payment.Learn more Mezzanine financingA hybrid layer of financing between senior debt and equity, combining fixed-income features with equity-upside rights.Learn more NBFCA company registered with the RBI that offers lending and financial services but cannot accept demand deposits like a bank.Learn more Revenue-based financing (RBF)A loan repaid as a fixed percentage of monthly revenue until a predetermined total amount is returned to the lender.Learn more Term loanA lump-sum loan repaid in fixed instalments over a defined period, typically used to fund capital expenditure or growth.Learn more Venture debtDebt financing designed for venture-backed startups, typically structured with warrants to compensate lenders for higher risk.Learn more Working capitalShort-term financing that bridges the gap between money owed to suppliers and money received from customers.Learn more