# Glossary

> Short explanations of the terms used in our guides and calculators.

- [Establishment fee](https://smallbusinessloan.co.nz/glossary/establishment-fee): A one-off charge for setting up a loan. Some lenders take it out of the money you receive, and others add it to what you repay.
- [Factor rate](https://smallbusinessloan.co.nz/glossary/factor-rate): A multiplier that sets the total you repay on a short-term business loan. Borrow $50,000 at a factor rate of 1.2 and you repay $60,000.
- [Personal guarantee](https://smallbusinessloan.co.nz/glossary/personal-guarantee): An agreement to repay a business loan yourself if your business can't. That puts your personal assets, including your house, at risk.
- [True annual rate](https://smallbusinessloan.co.nz/glossary/true-annual-rate): What a loan really costs as a yearly rate, once fees and the repayment schedule are counted. Use it to compare a factor rate loan with a bank loan.