Funding Terms You Need to Know

3 min readOct 30, 2025

In the spirit of the back-to-school season, NYC Funds Finder has created an educational guide to help you navigate funding terms to be better informed. We know that unfamiliar terms can make finding the right funding challenging. That’s why we’ve compiled a short list of the most popular ones (see full list in “Glossary” section of our website). Also, we’d appreciate your input in helping us put together a fall event, and we have a featured a survey at the bottom of this newsletter.

Annual Percentage Rate (APR): The annual rate that is charged for borrowing capital. This number represents the actual yearly cost of funds over the term of a loan and includes interest rate and fee
Cash Flow: The money flowing into and out of your business. Money in includes money from sales, owner investments, accounts receivable, or other categories. Money out are expenses such as manufacturing, shipping, license fees, and other charges. Calculating your cash flow helps you understand where your money is going and where it’s being well-spent.
Credit Score: A credit score is a numerical measure of credit risk, calculated by one of the three credit bureaus. It reflects your financial history, with on-time payments boosting your score and late or missed payments lowering it. Other factors like account age, credit usage, and new credit inquiries also affect your score.
Employer Identification Number (EIN): An EIN is a unique ID number that is assigned to a business entity so that they can easily be identified by the Internal Revenue Service. When you receive your EIN number a certiﬁcate is mailed to your location.
Equipment Financing: Money you borrow to get the equipment you need to run your business. The term “equipment financing” encompasses both loans and leases. Equipment loans are best for companies that can afford a down payment on equipment with long-term utility. Leases are more appropriate if you cannot afford a down payment or if the equipment needs to be replaced or upgraded frequently.
Equity: How much value is left over once you have totaled up your assets and subtract your liabilities. Equity can be found on your company’s balance sheet and should be one of the most common pieces of data employed by your company to access its financial health.
Fixed Asset: A long-term, tangible asset held for business use that is not expected to be converted to cash in the current or upcoming fiscal year, such as manufacturing equipment, real estate, and furniture.

Knowledge is power and NYC Funds Finder is your trusted source! We are working to assist you in navigating funding solutions available to New York City small businesses by connecting you to vetted capital providers and offering free business advice.

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