Business Finance Chapter 17
LowDoc Program
A program introduced by the Small Business Administration that allows businesses applying for loans of less than $150,000 to submit a one-page application with a small amount of documentation.
Secured Loan
A loan that is backed by collateral.
Line Of Credit
An agreement in which bank customers can borrow a certain amount of money from the bank immediately.
Venture Capital Firm
A company that provides private funding for small business that need a substantial amount of immediate cash.
Business Credit card
A credit card that is issued to a business rather than to an individual.
Commercial Finance Company
A firm that loans money only to businesses.
Commercial Loan
A loan taken out to finance a new or ongoing business.
Unsecured Loan
A loan that does not require collateral from the borrower.
Private Investor
A person outside an entrepreneur's circle of friends and relatives who provide funding because he or she is interested in helping the entrepreneur's business to succeed.
Small Business Administration (SBA)
An independent agency of the federal government that offers assistance to people who are starting small businesses and to those who want to expand existing business.
Entrepreneur
An individual who follows his or her dreams by assuming the risk of starting a new business.
Commercial Debt Financing
Borrowing money from a bank or other financial institution to funds a business.
Private Financing
Borrowing money from family or friends.
Reserve Fund
Money that can be made available for future expansion of a business.
Small Businsess Investment Companies (SBICs)
Private investment firms that work with the SBA to provide longer-term funding for small business.
Start-Up Costs
The costs of setting up a business.
Capital
The money a person needs to establish a business, operate for the first few months, and expand the business.
Operating Costs
The ongoing expenses that a person expects to have operating a business.