[budlightboy]

that makes no sense because based on your definition of term loan than a funder offering 50k @1.50 120 payments would be considered a term loan as it has a specific interest rate payment and term

Ahhh but it doesn't. That 50k 1.5 deal still has a holdback % listed on the contract. Deep within the size 4 font of that contract there will be a clause stating how the merchant can adjust their payment to equal the proper hold back %. That ability to adjust means there is no set term, and thus it's not a loan.