Amortization has two meanings. For loans it means gradually paying off debt through scheduled payments that cover both principal and interest. Each payment reduces the outstanding balance until it reaches zero.
For intangible assets (patents, copyrights, software), amortization works like depreciation — spreading the cost over the asset's useful life. If a company buys a patent for $100,000 with a 10-year life, it amortizes $10,000 per year.
The key difference from depreciation: depreciation is for tangible assets (machines, buildings) while amortization is for intangible assets and loan repayments.