[abfunders]

I understand what it’s used for and the point of it I just get confused when trying to interpret and understand the term sheet.

They have a weekly disbursement schedule on one side. That goes according to the amounts owed and to cover the payments. As the payments drop off, the disbursements are reduced and adjusted accordingly. Meanwhile, there's also a daily payment going out to the funder as well.
Some funders (like GFE) will put on their term sheet an optional add-on. They'll stack the merchant and include it into the reverse.