A lendor or investor is someone you might approach if you need this for your business.
What is money
100
Expenses that are incurred by a business every month
What are operating expenses?
100
Items of value owned by a business.
What are assets
100
Loans backed by collateral.
What are secured loans?
100
Money invested in a business in return for a share in the business's profits.
What is equity capital
200
These are financial statements based on projections or estimates.
What is pro forma financial statements.
200
This is when you project lower revenues and higher expenses.
What is when you create a worst case scenario.
200
items that a business owes to others.
What are liabilities?
200
an agreement by a bank to lend up to a certain amount of money whenever the borrower needs it.
What is a line of credit?
200
Individuals or companies who make a living investing in start-up companies.
What are venture capitalists.
300
One time only expenses that are paid to establish a business.
What are start-up costs.
300
A financial statement that indicates how much money a business earns or loses during a particular period.
What is an income statement.
300
Lowering of an asset's value to reflect their now lower worth.
What is depreciation
300
A loan made for a very specific purpose that is repaid within a year.
What is a short-term loan?
300
The steps you take to protect yourself against different types of risks.
What are security precautions?
400
This describes how much cash comes in and how much goes out of a business over a period of time.
What is a cash flow statement
400
This financial statement shows the assets, liabilities, and capital of a business at a particular point in time.
What is a balance sheet.
400
Money loaned to a business with the understanding that the money will be repaid, with interest, in a certain time period.
What is debt capital
400
The federal government agency whose purpose is to help small businesses.
What is the SBA
400
Risks caused by the actions of employees or customers.
What are human risks.
500
To create this, you will need to estimate your monthly revenues and monthly operating expenses.
What is a pro forma cash flow statement.
500
The amount remaining after the value of all liabilities is subtracted from the value of all assets.
What is Owners Equity or net worth.
500
Property that the borrower forfeits if he or she defaults on the loan.
What is collateral.
500
The business is a start-up; lack of a solid business plan; lack of adequate experience; lack of confidence in the borrower; inadequate investment in the business are all reasons for this.
What is a bank not to lend money.
500
A check that is written when the checking account has insufficient funds to cover the check amount.