Assets
Property, inventory, or some other valuable possession.
Capital
Cash or assets.
Cash flow
One of the things lenders look for when deciding whether or not to loan you money. They will want to know if your business had made a profit in the past and/or if the future looks good for your industry.
Collateral
Something pledged as security for repayment of a loan, to be forfeited in the event of a default. Other than cash, this is a second source, most often taken from personal or business assets.
Credit History
Your past experience with paying bills is a strong indicator of how you will perform when faced with new debt and obligation.
Debt financing
Borrowed money that's expected to be repaid to the lender over a specified period of time.
Emerging Company
Newly formed or reorganized companies that have successfully survived the early challenges that typically drive the majority of new firms out of business. Additionally, the company's owners, senior managers, funders and outside investors have targeted growth and expansion as key goals.
Equity financing
Investors offer capital to high-growth firms. In exchange for this high-risk capital, investors receive partial ownership and control of the business. Before providing equity financing, investors look for an experienced management team, potential high growth in revenue, size and market share, propriety technology, patents, or other advantages over competitors.
High-growth firm
Companies whose value increases at least 20% to 30% per year
High-risk capital
Repayment is not expected in short term Invoice Factoring A source of funding that doesn't rely on banks. It provides business owners with an advance on slow paying invoices so you can pay employees and suppliers.
Liquidation Rights
The rights that creditors and shareholders have in the event the company is forced to close down or dissolve.
Microlending
Small loans, often just a few hundred dollars to aspiring entrepreneurs, are sometimes available through community-based banks, credit unions, community loan funds and other local institutions.
PO Financing
A way to get money by using a client's purchase order. A small business owner may need capital in order to fulfill a large purchase order. Perhaps her supplier wants payment in advance or will only wait 30 days. With PO Financing, a lender accepts your customer's purchase order as evidence you will receive a payment. The lender pays the supplier on your behalf and when you complete the client's purchase order, you can use your customer's payment to settle your debt.
Preferred Stock
Stock that takes priority over common stock with regard to dividends and liquidation rights. Preferred stockholders typically have no voting rights.
Stock Dividend
A dividend payment made in the form of additional shares, rather than a cash payout.
Proprietary technology
A process, tool, or system that is the property of a business and provides an advantage to the owner.
Venture Capital
A broad term that indicates investment funds, partnership, and divisions of large corporations whose focus is on investing in emerging and promising young companies. Venture capitalists generally take preferred stock in a corporation in exchange for their investment, and expect to receive certain rights.
