Browsing: Encyclopedia

Interim financing is a short-term loan that can become a permanent financing source for your business. This loan is typically…

Intangible asset is something of value that cannot be physically touched, such as a brand name, franchise, trademark, or patent. There…

Hypothecation is the pledging of securities or other assets to secure a loan without actually transferring possession of the security used…

Hard money is a type of financing where real estate is usually used as collateral. The amount of funds a borrower…

Government loans from the SBA (Small Business Administration) can be used for most business purposes The purchase of real estate…

Going public is the process of an initial public offering(IPO.) An initial public offering is when a company offers part ownership…

Franchise financing can be a frustrating process without knowing your options. Apart from your local bank, these options fall under 3…

Forward commitment is a pledge to provide a commercial loan at a future date. A contractual pledge to complete a transaction…

First round financing is the first investment in a company made by external investors. First-round financing typically follows the startup phase.…

Factoring invoice allows you to bring tomorrow’s money in today Invoice factoring – or the selling of an accounts receivable invoice to…

Factoring government receivable invoices Factoring government receivable invoices is a fairly common practice to avoid cash flow problems for small,…

Factoring account receivable invoices is the best solution for quick payments. Factoring account receivable invoices give your business an advance payment upfront.…

External financing: Another source of capital for your business. External financing can take the shape of two different types of…

Export financing: Helping you take your products and business global. Export financing enables businesses to bring their products all over…

Expansion financing is capital for business growth. Expansion financing is used for companies that are in a position where they need to…

Equity loan is typically an “investment” in a company that is secured by a certain amount of that company’s shares and…

Equity participation – Providing an incentive to make a loan. Equity participation gives the lender an incentive to make a loan…

Equity financing: Selling stock for capital. Equity financing is the act of selling common stock or preferred stock to investors.…

Equity capital is capital raised from the owners of the company. This is different from debt capital which is money raised…

Leaseback financing is a creative way for companies to access capital tied up in owned equipment or property. The business…

There is traditional and non-traditional way of Equipment loan financing Equipment loan financing through traditional or non-tradition methods rather than…

Equipment leasing is a form of financing that more and more businesses are turning to when they are in need…

Equipment lease financing as opposed to purchase financing is gaining more and more popularity due to its many advantages. Advantages of…

Divestiture is the outright sale of company assets, such as ownership sale to employees, sale of large blocks of stock, or…

Discount loan is a loan on which the interest and financing charges are deducted from the face amount when the loan is…

DPO or Direct Public Offering is an offering in which the company shares of stock are sold directly to investors, rather…

Public offering is the making available of a new securities issue to the general public. The idea behind a public offering is…

Direct placement is an equity offering without an underwriter which is usually exempt from SEC filing. This is when a company…

Direct financing is financing done without the use of an underwriter or broker. In the situation of direct financing, the securities…

Development financing with the SBA 504 loan program. This program provides you with long-term, fixed-rate financing for major fixed assets…

Debt offering is a debt instrument offered for purchase by private investors – normally with warrants for future stock purchases at fixed…

Debt financing is financing a company by selling the bonds, notes or mortgages held by the business. Basically, it is borrowing…

Corporate Credit is a contractual agreement in which a corporation receives something of value now and agrees to repay the…

A convertible note is a debt instrument that can be converted into stock at the option of the holder or the…

Convertible debenture is a debt instrument that can be converted into stock at the option of the holder or the issuer. Instead…

Interim loan is a short-term financing option for your business. Interim loan financing is an excellent option for your business if you…

Collateral note is a promissory note secured by the pledge of specific company assets. Basically, when a business signs a promissory note while…

Collateral is assets pledged by a company to secure a loan. In the situation of a mortgage loan, the house would…

Capitalization is also known as “market cap.”The sum of a business’s long-term debt, stock and retained earnings. Capitalization is basically a…

Capital investment is the money used in acquiring a fixed or capital asset. Capital investment money is usually provided by private and non-private sources. Private…

Capital asset is a tangible property that cannot easily be converted into cash and that is typically held for a long…

Business loan broker is an individual or entity that acts as an intermediary between a borrowing business and a commercial lender.…

Business lender is an entity that makes business loans to other companies for various uses. There are so many different types…

Business leasing could be a great alternative to consider instead of purchasing. Your business can use business leasing to lease equipment,…

Before completing any business credit card application, it is a good idea to know what it takes to get approved…

Cash advance is a loan taken out against the balance on a credit card. Usually, the limit of the cash advance…

Business capital investors include either private individuals/entities or non-private firms/banks who take an equity position in your business venture. That equity…

Business capital investments are funding invested in a company by a lending institution or affluent individual. Business capital investments for start-up companies are…

Business capital is money that is used for the investment in a project or company. Business capital is the backbone for success…

Swing loan can be your bridge to opportunity. Swing loan financing has to be paid back much quicker than a standard…

Bridge loan financing is an effective vehicle to immediately capitalize on a purchase opportunity. It is a form of short-term financing…

Bridge loan financing is an effective vehicle to immediately capitalize on a purchase opportunity. It is a form of short-term financing…

Bridge financing is a way for companies, just before their IPO, to obtain the cash they need to maintain operations throughout the…

Bootstrap financing or Bootstrapping is to build a business out of little or nothing with no or minimal outside capital. Bootstrap…

Blue sky laws are state regulations that govern the sale of securities in an attempt to safeguard investors from fraud. The…

Blind pool is a limited partnership that is set up for investment but doesn’t specify what companies the general partner plans…

Best efforts offering is a term frequently used in the world of IPOs and businesses going public. A best efforts offering…

Bankruptcy reorganization financing provides potential turnaround financing for your business. Bankruptcy reorganization financing is required for businesses that are facing difficult…

Bank loan providers want to see a proven track record before they lend you any money, but you can’t establish the…

Asset loan is a specialized method of providing structured working capital and term loans that are secured by accounts receivable, inventory,…

Asset financing is typically structured as a line of credit secured by a specific asset or across a combination of existing…

What is the function of asset based loan? Asset based loan financing provides short term restructuring of a companies financial…

Asset based lending is a unique type of loan that is secured by a specific asset or a combination of assets,…

Finance is to raise money through the issuance and sale of debt and/or equity. Raising money through debt includes taking out…

Asset backed securities (ABS) are bonds that represent pools of loans of similar types, duration and interest rates. Unlike MBS (mortgage…

Apartment building loan sources are numerous to say the very least. It can seem impossible to find the right source of…

Apartment building financing, or multifamily property financing, is the process of obtaining capital for the purchase or refinance of a…

Angel private investments typically come from successful entrepreneurs known as “Angel Investors”. These investors offer expertise, experience, and contacts that…

Angel investors are people or organizations who make investments in startups or early-stage businesses in exchange for an equity ownership…

Adjustable rate loans or ARMs, when pertaining to commercial real estate, are ideal for borrowers who expect rates to go down…

A commercial mortgage is financing for your business property needs. Commercial mortgage lenders will provide financing to qualified businesses for…

Acquisition financing is funding to acquire or merge with another business. It is the means of providing capital to acquire control…

An SBA “Certified Development Company” (CDC) can provide you with long-term, fixed-rate financing for important fixed assets through acquisition and…

Accredited investors are individuals or entities that meet certain criteria set by securities regulators to qualify for participation in higher-risk,…

The investor is the entity that makes investments. Investing involves using money to make money. In the business world, investors consist…

Accounts receivable loans are owed by customers to the business; amounts owed to a business for goods and services sold by…

Accounts payable financing is money owed by the business to suppliers; amounts owed to others (creditors) on an open account for…

Account receivables financing is also referred to as “invoice factoring”. It is the sale of invoices (receivables) to a factor company…

Funding, also known as financing, is the act of providing funds(money) to a business or individual for various uses. Business owners…

Factoring or Accounts receivable factoring is a creative financing option that works for most businesses. A company might use factoring, a form…

A credit line, sometimes known as a “line of credit” (LOC), is a sort of standing loan that allows individuals,…

Venture capital is funding invested into your business’s success. Venture capital includes funds that are made available by a private group…

What is External Financing? External financing is another source of capital for your business. External financing can take the shape…

What is a lease? Simply stated, it is a contract where one party (who is known as the lessor) gives…

In the course of trying to raise money for your business needs, you have the choice of seeking dilutive or…

Your business has decided to jump into the commercial real estate market. Whether it is to buy a property for…

It happens all too often for small businesses: they are making money on the books and yet there never seems…

A Lessor is a lease participant who takes possession of the property and leases it to the lessee for temporary…

The Capital Asset Pricing Model (CAPM) identifies the link between systemic risk and projected asset return. The goal of the…

In finance, risk and return are highly related terms. They are most important topics that they form the foundation of…