Glossary of company Financing Terms
The language of funding can sometimes appear overwhelming. Below are a few terms that are common business owner has to understand:
Is the cash a company owes on a debt that is short-term. This financial obligation generally speaking features a due date through which it should be compensated in order to avoid planning to collections. On a stability sheet, payables are detailed as a obligation.
The cash company is owed by its customers. Like reports payable, this debt generally possesses turnaround that is short during which re re payment must certanly be made. On a balance sheet, receivables are detailed as a secured item.
Identifies loan choices offered to a company outside the bank that is traditional credit union. These might include on the web lenders, crowdfunding and invoice factoring. Alternate loan providers often have actually less credit that is stringent.
Someone who provides to spend money on startups and small enterprises, frequently on a basis that is case-by-case. Numerous business owners find angel investors through their social and expert sectors, though some web sites exist that help link angel investors to promising startups.
The attention a individual or company will pay for a financial obligation. This is certainly determined by multiplying an interest rate for the payment duration because of the wide range of durations in per year. Finance institutions have to disclose this figure being a yearly price to make it easier for customers to compare prices. (more…)