Finance jargon, decoded

Advance

A sum of money provided to your business upfront, which you repay over time according to agreed terms. An advance gives you quick access to capital without the lengthy processes of traditional loans.

Business funding

Funding for your business. You could apply for business funding for many reasons, all to do with running or expanding your business. Learn more about the GoTyme Business Advance which is a form of business funding.

Capital

Capital is anything (usually funds) that enables your business to generate more income, grow operations, or increase its overall value.

Cash flow

The movement of money into and out of your business. Positive cash flow means you have more money coming in than going out, allowing you to cover expenses and invest in growth. Managing cash flow is key to keeping your business running smoothly.

Collateral

Collateral is an asset (like your property or your car) that a funding provider might require as security for funding. Collateral minimises the risk for the funding provider and is a way of ensuring that an individual or business will fulfil its financial obligation. The GoTyme Business Advance does not require collateral - it’s approved based on your turnover instead.

Credit score

A numerical rating that reflects your creditworthiness based on your borrowing history, repayment track record and overall financial behaviour. Lenders use it to help decide whether to approve funding and on what terms.

Disburse

When we pay your approved funds into your bank account, we disburse those funds to you.

Fixed payment

A payment option where you pay the same agreed-upon amount at regular intervals, regardless of your turnover. Ideal for businesses with steady income that prefer predictability in budgeting.

Flexible or variable payment

A payment option where your payments are linked to your turnover - taken as a small percentage of your daily, weekly or monthly sales. When business slows, your payments go down; when sales increase, payments adjust accordingly. Perfect for seasonal or fluctuating businesses that need flexibility in their cash flow.

Funding offer

A personalised offer from GoTyme Bank showing how much you qualify for, your total cost of funding and your payment options. You can accept the full amount or just take what you need.

GoTyme business advance

A fast, flexible funding solution from GoTyme Bank that gives you an upfront cash advance, repaid through fixed or variable payment options that match your cash flow. Designed to help businesses move quickly on growth opportunities without the delays and red tape of traditional loans.

Interest rate

The percentage charged by a lender on the amount borrowed, usually calculated annually, for the use of their money. This cost can vary over time if it’s a variable interest rate. The GoTyme Business Advance does not charge interest - instead, it has a fixed fee agreed upfront that never changes.

Merchant Cash Advance (MCA)

A type of business funding where you receive an upfront lump sum in exchange for a fixed portion of your future sales. Instead of traditional interest, you agree to repay through fixed or variable instalments taken from your daily, weekly, or monthly turnover. The GoTyme Business Advance is a form of MCA, approved based on your turnover and without the need for collateral.

Personal guarantee

A legal promise made by an individual (usually the business owner) to repay the funding if the business cannot.

Re-advance

If you’ve already been funded by us and you are making payments on those funds, and managing your account in a responsible manner, you can qualify and apply for a re-advance. This means you can get funded again based on your track record with us.

Repayment

The daily, weekly, or monthly amount you pay to settle your funding. With the GoTyme Business Advance, you can choose fixed payments for predictability or variable payments linked to your turnover, so repayments adjust with your sales.

Revenue

The total amount of income your business earns from sales of products or services before any expenses are deducted. Revenue is a key figure used to assess business performance and funding eligibility.

Secured funding

Funding that requires you to provide collateral (such as property, vehicles, or equipment) as security. If you fail to meet your payment obligations, the funder can claim the asset to recover the outstanding amount. The GoTyme Business Advance is an unsecured product, which means it does not require collateral.

Security

Assets, guarantees, or other forms of assurance provided to reduce the funder’s risk and secure the funding.

Settlement

Paying back your funding in full, either at the end of your term or earlier. Early settlement may qualify you for a discount, and with GoTyme Business there are no penalties for settling early.

SME

An abbreviation for Small and Medium-sized Enterprises. These are businesses that fall within a certain size range based on factors like number of employees or annual turnover. SMEs form the backbone of the economy and are often the focus of business funding solutions.

Traditional loan

A form of funding where a bank or financial institution lends you money for a set term, with interest charged on the outstanding balance. Repayments are usually fixed amounts made at regular intervals, and collateral may be required as security.

Turnover

The total income your business generates from sales before expenses are deducted. Turnover is often used to assess your eligibility for funding.

Underwriting

The process a funder uses to assess the risk of offering funding to your business. This can include reviewing your turnover, business history and creditworthiness before making a final decision.

Unrestricted funding

Funding that is approved and disbursed without the funder regulating or restricting how you should use the funds. That means you can spend your funds on whatever your business needs.

Unsecured funding

Unsecured funding does not require security or collateral. Instead of relying on your assets, unsecured funding is approved based on your business’s data-driven creditworthiness and turnover history.

Working capital

Funds available to cover your day-to-day operating expenses, such as payroll, rent, or stock purchases, enabling your business to run smoothly between income cycles.

Working capital finance

A short-term funding solution designed to boost your business’s cash flow and cover everyday operational costs. It helps bridge the gap between outgoing expenses and incoming revenue, keeping your business running smoothly during seasonal dips or payment delays.