Browsing: Encyclopedia

Charter service refers to a transportation arrangement where a vehicle, ship or aircraft is contracted for exclusive use for a…

Analytical review procedures are an essential component of the auditing process. Auditors use these techniques to analyze financial statement data…

Standing data refers to master information about employees that is maintained in payroll systems. This foundational data changes infrequently and…

An initial payment, also known as a down payment or deposit, refers to an upfront amount paid at the beginning…

Many local governments use an innovative financing tool called a mutual improvement certificate to fund public works projects. These certificates…

Financial viability is the ability of a company to generate sufficient revenue to cover its expenses and debt obligations over…

A direct relationship describes the correlation between two variables: when one increases or decreases, the other does as well. This…

If you have taken out a loan, used a credit card, or invested in bonds, you have encountered debtholders. A…

When obtaining a loan, an individual is borrowing a certain amount of money. The overall expense of the loan is…

Investors and analysts can use the cash flow adequacy ratio to gauge a company’s financial health and determine its capacity…

A key performance indicator (KPI) is a metric that shows how well you accomplish an important business goal. KPIs help…

In the world of business, sales and marketing are two terms that are usually used together and sometimes even interchangeably.…

The process of employment is a rather long process that will require several steps and phases to be completed. Recruitment…

When you are dealing with competition in your online business, you may need search engine optimization (SEO) and pay-per-click (PPC)…

The main reason there are things such as trademarks and copyright is that every work or idea needs to be…

Merger and acquisition are very well-known terms that are used when people are talking about companies and organizations. Merger and…

If you have a bank account, you must have heard the terms “saving account” and “current account”. The majority of…

Though the debit card is your debit money and credit card is your credit money, let’s drill down the exact differences…

Identifying the difference between management and leadership It has always been suggested by studies and research that management and leadership…

A one-person company refers to a business with just one member. A firm with just one shareholder among its members…

The average cost of a particular fund can be used to define the cost of capital, which is the total…

There are two options open to you if you decide to invest in a company: equity (commonly known as stocks…

The statement of shareholder equity may also be referred to as a statement of stockholders’ equity. A statement of owners’…

Internal and external recruitment are components of the HR procedures that businesses employ to surround themselves with the talent they…

What is Peer to Peer Lending? Peer-to-peer lending, also known as social network lending, allows borrower members to borrow money through…

In residential lending, the lender determines how much a borrower can afford by calculating his debt-to-income ratio – how much…

A wraparound mortgage, also known as an all-inclusive trust deed, is a creative way to allow you to purchase property without…

When the commercial lending market climate is dry, buyers and sellers of commercial real estate start looking for creative financing solutions. One…

A second lien loan is a secured loan tied to one of the company’s assets, specifically an asset that already…

An unsecured business loan is one that does not require collateral but is issued on the basis of the borrower’s…

Getting started in the commercial mortgage market can be daunting if you are not familiar with the jargon. In order to be…

Most businesses protect themselves with insurance policies to cover disasters like fires, flooding, or earthquakes. However, while that basic insurance coverage will…

Meaning of Business Insurance Like home insurance, business insurance protects the contents of your business against fire, theft and other…

Wrap-around mortgage financing is the perfect solution for you if your business has a little business credit history. Most lenders won’t…

A wrap around loan allows you to purchase property without having to qualify for a loan. This can save time, and also…

Venture capital limited partnership is a limited partnership that invests in small businesses with high growth potential. A venture capital limited…

Venture capital financing can inject your business with the necessary capital.  Venture capital financing can be an outstanding source of capital…

Venture capital equity means investing financial and human capital in partnership with you. Venture capital equity is the business of investing…

Unsecured business loan financing can be used for almost anything surrounding your business including the purchase of equipment, remodeling, office…

Underwriting is the process through which a lender determines if your business is creditworthy and should receive the applied for…

Turnaround financing can improve a dying business. Turnaround financing is for companies that have had a history of bad performance. It…

Takeover financing refers to the funding obtained to gain control over a corporation through the purchase of its stock. The…

Sweat equity is a human contribution to a business. Sweat equity refers to the efforts of executives or other shareholders in…

Startup loan financing can provide financial flexibility for entrepreneurs. Startup loan financing often includes an unsecured line of credit. This can…

Startup funding helps turn your vision into a reality. Startup funding is necessary for most businesses to get off the ground.…

Startup capital is necessary to start your business. Startup capital is the money needed to begin your business. This would include…

Small business loan is financing for your business success. Small business loan capital is one of the more common methods of…

Small business funding provides working capital for your business through debt or equity financing. Small business funding is readily available to…

Silent partner is a business partner who provides capital but does not participate in the management of the company. Any person…

Seed funding helps companies with a new product launch. Seed funding is most often confused with startup capital, but they are…

Seed capital is money used as the initial investment for a new product or service launch. Seed capital enables businesses to…

Second round financing allows you to maintain profitability and continually expand your business. Definition of Second Round or Series B Financing…

Secondary public offering is an excellent method for a company to raise additional working capital Secondary public offering financial moves are…

Secondary financing plays an important role in some commercial real estate transactions. A second trust deed is often utilized to…

SCOR is the Small Corporate Offering Registration. SCOR allows small businesses the opportunity to go public with their business. It also enables…

SBIC is the Small Business Investment Company SBIC is a private investment company co-funded by the Small Business Administration. SBICs provide businesses…

Sale and leaseback financing is a way for companies to access capital by selling assets they already own, like equipment…

Rollover mortgage allows refinancing of loan balance at the current rate. Rollover mortgage is best defined as a short-term loan in…

Risk capital is funding for firms with excellent growth potential. Risk capital is provided most of the time by venture capital…

Revolving line of credit provides capital for your business in times of need.  Revolving line of credit financing can be an…

Revolving collateral allows you to secure a loan. Revolving collateral is a unique way for your business to secure a loan.…

Reverse acquisition allows your private company to go public without regulatory requirements. Reverse acquisition is a technique where a private company…

Receivable factoring allows you to sell invoices for instant capital. Receivable factoring enables your business to have fast access to cash by…

Real estate sale and leaseback is an excellent financing method increasing in popularity. Real estate sale and leaseback financing allow your…

Real estate sale-leaseback financing is when a business sells its commercial property for current market value and then instantly leases…

Real estate purchase loans are typically business loans that are collateralized with commercial real estate. Loans to expand or improve…

Purchase order financing offers quick cash flow reserves. Purchase order financing is an excellent method for a business to obtain quick…

Purchase order factoring – Grow and expand with your business. Purchase order factoring sometimes called “contract funding is great for businesses…

Reverse merger allows your private company to go public. Reverse merger financial transactions are becoming increasingly popular and accepted. It is…

Public shell is a viable alternative to going public Public shell transactions are a widely accepted, alternative means for a private company…

Privatization is defined as the transfer of ownership from the public sector to the private sector. Privatization can also refer to the…

Private investment in public entity – Also known as PIPE investments Private investment in public entity financing takes a big stake…

Private equity investments are the most important funding source in the entrepreneurial marketplace. Private equity investments contribute to the funding of around…

Private capital investors refer to private individuals who contribute their skills and money to start-up companies. They often work in…

Primary offering is the initial sale of a company’s stock.  The revenue from the sale of the stock will go straight…

Pre-qualified funding is the process of pre-qualifying your business funding request before you apply. This makes your business look much more…

Preferred debt is debt that the repayment of or lien position takes precedence over other debts. Your first mortgage would be…

Pledging assets is an offering asset to a lender as collateral for a loan. During the period of the loan, the…

PIPE investments (Private Investment in Public Entity) take a sizable position in publicly traded companies whose valuations have dropped since…

A permanent end loan refers to short term financing of real estate construction projects which are then followed by long term financing,…

Paid in capital also known as contributed capital. Paid in capital is the capital a company receives from investors on top of…

Open end lease is a lease requiring an additional payment at the lease end, the amount of which is dependant upon on…

Open end credit is an agreement by a lender to lend a specific amount to a borrower and to allow that…

Off-balance-sheet financing is financing from sources other than debt or equity offerings, such as joint ventures, R&D partnerships, and operating leases. …

Nonrecourse debt – A secured loan with no personal liability. Nonrecourse debt is secured by some form of collateral, under which…

Minority business finance is the process of providing working capital to minority-owned businesses either through debt or equity.  It has been shown…

Micro loans provide your business with small capital injections that can really make a huge difference to your company. Typically micro…

Mezzanine finance funding can come in the form of stand-alone subordinated debt or equity transactions. Most often it is found…

Mezzanine financing – Bridging financial gaps Mezzanine financing gives businesses access to capital when a bank won’t finance them initially. It…

Definition of Mezzanine Investment Mezzanine investment financing (also referred to as third-stage capital) refers to a later-stage investment provided to a…

Mezzanine funding, in a generic sense, is a venture capital term used to describe funding for a company that is…

Merger and acquisition funding at a competitive rate requires a properly structured transaction. Financing for such scenarios comes in a variety…

Merger financing enables the combination of two quality companies. Merger financing is a necessity when two companies want to join…

Letter of credit is a document issued by a bank that guarantees the payment of a customer’s drafts for a specified…

Leveraged buyout financing (LBO) is typically provided for the strategic purchase of other product lines, divisions, or companies. They can…

Later stage funding is normally for a company expecting to go public usually within a year. Often this funding is…

Joint venture financing for commercial property Joint venture financing is a means of structuring a mortgage in order to help…

IPO (Initial public offering) is the first sale of stock by a company to the public.  An initial public offering is designed to…

Inventory loan uses your inventory to secure a loan. Inventory loan financing (also known as “Flooring”) is the leveraging of inventory…

Intrastate offering enables your business to sell stock within one state. Intrastate offering financing is a very unique method for…