definition
Invoice
A formal itemized document sent by and entrepreneur to a client detailing products or services provided, their costs, payment terms and the amount due
Equity Capital
Equity capital is the funds raised by a business in exchange for partial ownership shares, without requiring repayment or interest
Income Statement
A financial document that measures a business revenue, expenses and net profit or loss over a specific period
Line of Credit
A flexible financing arrangement providing a predetermined, revolving limit of funds that a business can draw from as needed
Factoring
A financial transaction where an entrepreneur sells their outstanding accounts receivable to a third party at a discount to secure immediate cash flow
Balance sheet
A financial statement provding a snapshot of a businesses financial heath asset and liabilities and equity at a specific point in time such as quarter end or year end
Debt Capital
Borrowed money raised by a business that must be repaid to lenders over time, typically with interest without diluting ownership
Financial ratio
Key performance metrics derived from a companies financial statements used by entrepreneurs to assess a businesses health
Collateral
An asset such as real estate, equipment, inventory or cash- pledged by a business owner to a lender to secure a loan
Cash Flow analysis statement
A critical financial document that racks the actual cash moving in and out of a business over a specific period, detailing operating, investing and financing activities
Return on investment
A profitability metric measuring the gain or loss generated on an investment relative to its total cost, usually expressed as a percentage
Return on Equity
A financial metric that measures an entrepreneur profitability by revealing how much profit a company generates for every dollar of shareholder equity invested
Chart of Accounts
An orginized, number index of every financial account in an entrepreneurs general ledger, acting as a financial map for the business
Cash
The liquid assets-physical currency, bank account balances, and readily convertible securities a business has available for immediate use
Accounts receivable
The outstanding balances or money owed to a business by customers for goods or services delivered on credit
Fixed Assets
long-term , tangible or intangible property-such as machinery,buildings, or patents-owned by an entrepreneur to produce goods, provide servies, or use for operational purposes rather than for immediate resale
Liquid assets
Cash or resources that a business can quickly and easily convert into cash without significant loss of value
Illiquid assets
Business resources that cannot be quickly converted into cash at fair market value