Shopify Term Loans glossary of terms

Total Payment AmountThis is the total amount that the merchant must repay and is equal to the Loan Amount plus the Cost of Funds.
Loan AmountThis is the amount of funding that the merchant receives.
Cost of FundsThis is the cost that the merchant pays for the funds. It's expressed as a fixed dollar amount.
Repayment ScheduleThis may be weekly or monthly. Once the merchant agrees to the repayment schedule, it may not be changed.
TermThis is the length of time the merchant has to repay the Total Payment Amount. It may be expressed in weeks or months depending on the Repayment Schedule. The standard is 12 months.
Periodic Payment AmountThis is the fixed amount that the merchant must pay every week or month as applicable. It is equal to the Total Payment Amount divided by the number of weeks or months in a Term.
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