What Is Amortization?
Simply put, amortization refers to debts that are set to be paid off using a fixed repayment schedule. The loan amount is paid in regular installments over a set time period. Amortized loan payments usually consist of a principal amount combined with the interest specified by the loan terms. Payments begin with high interest paid for the first payment, then the interest gradually reduces over time, allowing more contribution toward the principal amount. SBA Express loans are an example of amortized loans.