# Shopify Term Loans glossary of terms

Term | Definition |
---|---|

Total Payment Amount | This is the total amount that the merchant must repay and is equal to the Loan Amount plus the Cost of Funds. |

Loan Amount | This is the amount of funding that the merchant receives. |

Cost of Funds | This is the cost that the merchant pays for the funds. It's expressed as a fixed dollar amount. |

Repayment Schedule | This may be weekly or monthly. Once the merchant agrees to the repayment schedule, it may not be changed. |

Term | This 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 Amount | This 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. |