Loans
default
failure to repay a loan
personal capabilities
abilities an individual develops that help him/her succeed.
collateral
equipment, inventory, or other goods that are pledged to the bank in the case the company can not make a loan payment
a company that provides individuals and companies will access to financial markets.
online credit
debt obtained from a number of online companies. Borrowers need to disclose much less information about themselves to obtain online credit, and online companies make credit decisions much more quicky than banks.
guarantor
a credit-worthy person/business with sufficient liquidity that promises to repay a loan in the event that the debtholder cant make a required payment
marketing
you will communicate with large numbers of customers and motivate them to learn more about your business.
corporation
a person in the eyes of the law. The corporation is taxed for profits and is liable for any debts or judgments.
cost of goods sold
costs that make up a unit of what you sell. these can be labor costs as well as material costs.
line of credit
a loan that provides the borrower a maximum amount of money he/she can borrower- the borrower can then access or use that line of credit for only as much money as they need at any particular time.
bank loan
debt from the bank. banks require much more info from potential borrows and take more time
communication skills
the ability to use convey information. Both verbal (or spoken) and written communication skills are important.
engaging question
open-ended questions that prompt more than a yes or no response.
profit
revenues minus costs
credit-worthiness
company owners with strong credit scores and a financial record of repaying loans
angel investors
people that make small investments (loans) in an enterprise or to support an entrepreneur where they do not expect an immediate or large return on investment
computer literacy
the ability to use computers for basic tasks, such as developing documents, sending emails, and searching the internet for info.
grit
an individual self-commitment to overcome obstacles to achieve long-term goals. the ability to keep pursuing your dream despite challenges and defeats.
profit per unit
unit price minus cost of good solds
liability
an obligation you have to pay someone else money.
online loan
easier and quicker loan to get yet harder to repay
comfort engaging with strangers
the ability to interact in a friendly and effective way with unfamiliar people. The ability to seem welcoming and easy to talk to.
fairness
treating stakeholders as the entrepreneur would hope others would treat him/her
overdraft
when a company uses issues a check or makes a financial commitment for an amount the company has deposited in the bank.
principal
the amount of money borrowed.