Capchase glossary

Last updated: June 17, 2026

  • Capchase App: The web application where Vendors, Partners, and Buyers log in to manage deals, run PBQs, and view status. Accessible at app.capchase.com.

  • APR (Annual Percentage Rate): The annualized cost of financing expressed as a percentage.

  • OEM: A company that sells software or services and uses Capchase to offer financing to its buyers.

  • Channel Partner: A reseller or channel company that facilitates deals between Vendors and Buyers.

  • Underwriting: The process by which Capchase reviews and evaluates the creditworthiness of a customer. Underwriting enables Capchase to offer customers a comprehensive package that includes total credit capacity, term, and associated fees.

  • Buyer: The company purchasing software/services from a Vendor and financing the purchase through Capchase. Buyers complete Payment Links, sign the IPA, and make installment payments.

  • Order: The core financing arrangement between a Vendor and a Buyer. Encompasses the full lifecycle from creation and configuration through buyer completion, approval, funding, and servicing.

  • Term Length: Total duration of financing in months. Common: 12, 24, 36, 48, 60 months. Note: The term length is determined by the qualification process.

  • Multi-Year Order: Order with term >12 months.

  • Payment Link: The URL sent to a Buyer to review terms, provide payment information, sign the required document, and complete an Order. The Payment Link is the completion mechanism for an Order — it is NOT the Order itself. One Order has one Payment Link.

  • Repayment / Installment: The amount the buyer pays Capchase back on agreed terms, including both fees and principal. A single scheduled payment within an Order's repayment schedule.

  • Line Item: An individual entry on a PO, invoice, or Order representing a specific product, service, or charge (e.g., software license, hardware, taxes, SPIFF). POs now include draw IDs and net amounts.

  • IPA (Installment Purchase Agreement): Legal agreement between Capchase and Buyer governing installment payment terms (schedule, amounts, method, late fees, governing law). Signed via DocuSign during PL completion.

  • PO (Purchase Order): A document confirming the buyer's intent to purchase. Auto-generated after Payment Link completion and sent to vendors. It includes net amounts and draw IDs.

  • Notification: Automated emails at deal lifecycle stages:

  • Invoice: A billing document.

  • SPIFF (Sales Performance Incentive Fund): A SPIFF is the opposite of a subsidy — instead of lowering the buyer's rate, you add a fee that increases it, generating revenue for you. At Capchase, a SPIFF does not affect the principal amount being financed.

  • Subsidy: A vendor subsidy is a financing mechanism where you absorb part of the financing cost on behalf of your buyer, lowering the rate they see. At Capchase, applying a subsidy reduces the buyer's effective rate without changing the principal amount being financed.

If you have any questions, don’t hesitate to contact us at support@capchase.com.