How does business loan amortization work?

Amortization spreads loan repayment across the loan term so each payment is equal but the portion going to principal vs interest shifts over time. Early payments are mostly interest; later payments are mostly principal. On a $200,000 10-year loan at 7%, your first payment is roughly $1,394 interest + $929 principal. By year 8, the same payment is roughly $410 interest + $1,913 principal.