refers to borrower's reputation and track record for repaying debts
Character
wealthy individuals who provide funding in exchange for ownership equity
Angel Investors
amount of money being borrowed
principal
the initial capital used to start a business
seed money
helps Americans start, grow, and build resilient businesses
Small Business Administration
refers to borrower's ability to repay the loan
professional investors who invest large amounts of money and take active role in company
venture capitalists
amount charged by a lender for the borrower to use the loaned money
interest rate
financial gain earned after subtracting expenses from revenue
profit
resources to help buy a franchise, calculate startup costs, write your business plan
refers to the borrower's net worth or financial strength
Capital
offer traditional forms of business financing - loans and lines of credit
banks and credit unions
failing to repay a loan
default
long-term resources a business uses over several years (building, equipment)
fixed assets
LAUNCH
assets that the borrower offers to secure a loan
Collateral
funds given to businesses that don't need to be repaid
grants
the time period in which you agree to pay back the loan
term
process of assets losing value over time
depreciation
resources to help buy assets/equipment, manage finances, marketing, pay taxes, stay compliant
MANAGE
the actual terms of the loan itself (interest rate, loan terms)
Conditions
starting and growing a business using personal savings without external funding
bootstrapping
standardized calculation that represents yearly cost of loan (interest rate plus fees and rates)
APR (Annual Percentage Rate)
resources that fluctuate in quantity and value (inventory)
variable assets
resources that help expand to new locations, export products, merge or acquire businesses
GROW