What is the difference between amortizing and non-amortizing capital?

Amortizing capital pays the principal down on a schedule. Each payment covers interest and a slice of principal, so the balance falls and the loan is gone at the end of the term. Non-amortizing capital leaves the principal outstanding. Payments cover interest only, or they defer both interest and principal. The full balance comes due as a lump sum at maturity. Amortizing debt costs more each period and less over the life of the loan. Non-amortizing debt does the reverse, and it leaves a refinancing risk when the balloon comes due.