The Ultimate Fintech Glossary for Founders Raising Capital

Navigating the fintech landscape can be overwhelming — especially if you didn’t “grow up” in finance.

To bring greater awareness and accessibility to the lesser-known terms and strategies that shape this space, I’ve pulled together a glossary of 200+ concepts I’ve personally worked with over the course of my 15-year career in the financial sector.

Use it often.

Share it freely.

No gatekeeping here. :)

Focus Areas:

A. Fintech Foundations

B. Regulatory Environment

C. Credit Risk

D. Lending Lifecycle

E. Capital Stack

F. Fundraising

G. Performance Metrics

H. Financial Statements

I. Fundraising Pathways

J. Risk Concentration

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A. Fintech Foundations & Technology

Core concepts for building and operating digital financial solutions.

FinTech

Short for Financial Technology.

Refers to the use of innovative technology to improve, automate, and deliver financial services — spanning digital payments, lending platforms, neobanks, and blockchain applications.

Autonomous Finance

AgTech / HealthTech / EdTech

API (Application Programming Interface)

Microfinance

Open Source

UX / UI

Data Analytics / Data Infrastructure

BaaS (Banking-as-a-Service)

Virtual Wallet / Mobile Wallet / Paycards

Parent Accounts / Child Accounts

Custodian Account

Interoperability

Processing Fees 

Pay-as-You-Go (PAYG)

Rent-to-Own

Buy Now, Pay Later (BNPL) Considerations

Remittance

Cross-Border

Cross-Currency

Social Capital

Last Mile

Booking Agents 

Scope of Work

Accounting

Chart of Accounts

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B. Regulatory & Compliance Environment

Terms that help you navigate the legal and operational landscape.

Regulated Industry

Consumer Financial Protection Bureau (CFPB)

Federal Reserve Banks

Money-Laundering

Risk / Return Analysis

Regulatory Environment

ISDA (International Swaps and Derivatives Association)

Insurance Coverage

Legal Counsel / Side Letter / Engagement Letter

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C. Credit Risk & Underwriting

Understand how lenders and partners assess risk and structure debt.

Credit Risk / Liquidity Risk / Interest Rate Risk

Creditworthiness

Credit Monitoring

Obligor / Guarantor / Collateral

Obligor Risk Rating / Facility Risk Rating

Default / Delinquency / Write-Offs

Credit Vintages

PaR (Portfolio at Risk)

Stress Testing / Interest Rate Risk Modeling / Hedging

Due Diligence / Risk Mitigation

Credit Policy / Procedures / Escalation Procedures

De-Risking Mechanisms

Key Credit Risks

Primary / Secondary / Tertiary Sources of Repayment

Base Case / Stress Case Projections 

Pro Forma Financials

Debt Restructuring

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D. Lending Lifecycle & Deal Review

Every step from application to portfolio management.

Origination / Underwriting / Close

Pre-Qualification Screenings / Deal Staging Tool

Credit Approval Memo / Credit Committee

Approval / Conditional Approval / Decline

Credit Memo / Executive Summary / Contracts

Opportunity to Cure / Breach Letter / Demand Letter / Notice of Acceleration

Relationship Manager / Account Manager

Credit Associate / Credit Analyst / Credit Officer / Chief Credit Officer

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E. Capital Stack & Debt Instruments

The structures you’ll use to fund and grow your fintech.

Term Loan / Delayed Draw Term Loan / Draw to Term

Revolving Line of Credit

Senior Secured Debt / Subordinate Debt / Mezzanine Debt

Asset-Based Lending / Borrowing Base Lending

Accounts Receivables Finance / Trade Payables Finance

Cash Flow Lending / Project Finance / Lease Financing

First-Loss Reserve / First-Loss Guarantee / Ring-Fencing / SPV

Standby Letter of Credit / Letter of Credit

Purchase Card

Daylight Overdrafts

Overdraft Line

Commercial Paper / Commercial Paper Backstop

Bridge Loan

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F. Fundraising & Deal Terms

Terms you’ll see in venture deals, loan agreements, and investor conversations.

Deal Structuring

Term Sheet

Origination Fees / Arrangement Fees / Interest Rate / Incentives

Unfunded Commitment Fees / Unused Line Fees

Credit Agreement / Redline Credit Agreement

Master Credit Agreement (MCA)

Guarantors / Collateral / Interest Buy-Downs / Right of First Refusal

Change of Control Clause

Cross Default / Cross Acceleration

Performance-to-Plan Covenants

Return on Assets / Return on Equity

Relationship Economics / Strategic Rationale

Cash Flow Sweeps

Credit Agreement Punch List

Initial Public Offering (IPO)

Acquisition / Merger

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G. Performance Metrics & Financial Ratios

Use these to prove your model, maintain lender confidence, and fundraise smarter.

EBITDA / Adjusted EBITDA

Debt-to-EBITDA / Debt-to-Equity / Debt-to-Capitalization

Senior Leverage Ratio / Total Leverage Ratio

Interest Coverage Ratio / Fixed Charge Coverage Ratio

Free Cash Flow After Discretionary Items

KPIs / Unit Economics

Sensitivity Matrix / Scenario Planning

Tier 1 Capital

Dry Powder

Value Proposition

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H. Financial Statements & Analysis

Accounting concepts every fintech founder must understand.

Financial Analysis

Income Statement / Balance Sheet / Cash Flow Statement

Statement of Retained Earnings

Amortization Schedules / Repayment Schedules

Operating Income

Bookings / Backlog

Book-to-Bill Ratio / Backlog Age

Cap Table

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I. Fundraising Pathways

Explore diverse funding models to consider.

Crowdfunding

Venture Capital

Angel Investment

Private Equity

Grants

Peer-to-Peer Lending (P2P)

Bootstrapping

Catalytic Funding

Commercial Debt

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J. Risk Concentration & Monitoring

Avoid pitfalls that can quietly unravel your business.

Credit Exposure

Balance Sheet vs Off-Balance Sheet (OBS) Credit Exposure

Customer Concentration Risk

Contract Concentration Risk

Settlement Risk

Payment Risk

Right-Way Risk / Wrong-Way Risk

Short-Term vs Long-Term Debt

Mandatory Debt Amortization

Portfolio / Portfolio Review

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Final Thoughts

Understanding these terms isn’t just about sounding informed — it’s about making sharper decisions, building lender-ready systems, and protecting your business from quiet financial risks. Whether you’re structuring your first credit product or navigating complex fundraising options, this glossary is here to help you lead with clarity.

If you’re ready for deeper guidance, visit blazegroup.io/consulting to explore our Equitable Finance program — built to help fintech founders design sustainable, scalable financial strategies from the inside out.