Making Bank
Debt from a bank. Banks require much more information from potential borrowers, and take more time to make a lending decision based on a great deal of analysis.
Bank Loan
Debt obtained from a number of online companies. Borrowers need to disclose much less information about themselves to obtain online credit, and online credit companies make credit decisions much more quickly than banks.
Online Credit
The ability to accurately convey information. Both verbal (or spoken) are important.
Communication Skills
Publicly traded stocks, government bonds or corporate bonds tat can be quickly turned into cash.
Cash Instruments
The individual or business that purchases an insurance policy for various types of protection (examples: fire insurance, life insurance, etc.)
Insurance Policyholder
A loan and security that investors buy and sell, that represents a legal obligation from the company issuing it that they will repay the fund they received when they issued it.
Bond
A loan that provides the borrower a maximum amount of money he/she can.
Line of Credit
Working with others to address a challenge. Individuals using their skills in harmony with others to complete a task. Collaboration and cooperation.
Teamwork
A company that provides individuals and companies with access to financial markets.
Brokerage
The amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss. Example: "The fire at my store caused $20,000 in damages. After I paid my deductible of $500, my insurance company paid my claim in the amount of $20,000 - $500 = $19,500."
Insurance Claim
It means revenues after costs. Example: you get $1,000 a month for renting a house you own to a friend. The costs of maintaining the house every month equal $800.
Net Income
Funds lent to a business with an agreement that the business will repay the lender with interest.
Credit (or Debt)
All people or companies associated with an enterprise. They include internal as well as external.
Equipment, inventory or other goods that are pledged to the bank in the case the company can not make a loan payment.
Collateral
The amount a policyholder (either every quarter or year) pays for an insurance policy. Example: that fire insurance policy for the new store has an annual premium (or cost) of $1,000.
Insurance Premium
The percentage of a loan a bank or online credit company charges when a small business receives a loan. Original fees add to the cost of the loan.
Origination Fee
A person or a business with a strong credit score and the financial resources that make it likely they will be able to repay any loan.
Credit-Worthiness
An individual or company that owns shares in a company.
Shareholder
Companies that conduct business with another company, and that can document how well a company pays its bills to its suppliers.
Trade References
An obligation you have to pay someone else money. Also called a debt or a loan.
Liability
When a company issues a check or makes a financial commitment for an amount greater than the amount the company has deposited in the bank. Also called "a bounced check."
Overdraft
The hard work a small business owner puts into forming, founding and operating his/her business – small business owners typically work very long hours. Sweat equity is as important as any capital but it’s not a cash investment.
Sweat Equity
One of the equal parts into which a company's capital is divided, entitling the holder to a proportion of the profits. Share refers to the ownership certificates of a particular company.
Share
They refer to the “things” the company sells. Retail stores sell many different types. Service businesses can sell different services.
Units
Fixed costs plus variable costs. If the enterprise sells more than one type of unit, Total Costs equal the sum of fixed costs and the sum of variable costs (or cost of goods sold) for each type of unit.
Total Costs