Small Business Encyclopedia
Category: Expansion-financingFactoring
A financing method in which a business owner sells accounts receivable at a discount to a third-party funding source to raise capital
Angel Investor
An individual who invests his or her own money in an entrepreneurial company
Friends/Family Financing
Monies, usually in the form a loan, that a business owner gets from either family members or friends in order to help finance their startup or growing business
Government Grants
An award of financial assistance in the form of money by the federal government to an eligible grantee with no expectation that the funds will be paid back. The term does not include technical assistance which provides services instead of money, or other assistance in the form of revenue sharing, loans, loan guarantees, interest subsidies, insurance, or direct appropriations
Grant Proposals
A formal proposal submitted to a government or civilian entity that outlines a proposed project and shows budgetary requirements and requests monetary assistance in the form of a grant
Guarantees
A pledge, usually in writing, given by a company to any customers that something is of specified quality, content, benefit or that it will provide satisfaction or will perform or produce in a specified manner. A guarantee also outlines what will happen should the buyer not be satisfied with his purchase.
Home Equity Loans
A loan that allows homeowners to borrow against the equity in their homes
Balloon Loan
A loan that requires a single, usually final, payment that is much greater than the payment preceding it
Bank Loans
A loan that a business owners gets from a bank
Debt Financing
A method of financing in which a company receives a loan and gives its promise to repay the loan
Equity Financing
A method of financing in which a company issues shares of its stock and receives money in return. Depending on how you raise equity capital, you may relinquish anywhere from 25 to 75 percent of the business.
Loans
Money borrowed that is usually repaid with interest
Term Loan
A loan for equipment, real estate and working capital that's paid off like a mortgage for between one year and ten years
SBA Loan
Term loans from a bank or commercial lending institution that the SBA guarantees as much as 80 percent of the loan principal for
Popular Articles
This AI is the Key to Unlocking Explosive Sales Growth in 2025
Tired of the hustle? Discover a free, hidden AI from Google that helped me double sales and triple leads in a month. Learn how this tool can analyze campaigns and uncover insights most marketers miss.
63 Small Business Ideas to Start in 2024
We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.
A New Hampshire City Was Named the Hottest Housing Market in the U.S. This Year. Here's the Top 10 for 2024.
Zillow released its annual lists featuring the top housing markets, small towns, coastal cities, and geographic regions. Here's a look at the top real estate markets and towns in 2024.
The End of Bureaucracy — How Leadership Must Evolve in the Age of Artificial Intelligence
What if bureaucracy, the very system designed to maintain order, is now the greatest obstacle to progress?
Is Your Business Healthy? Why Every Entrepreneur Needs To Do These 3 Checkups Every Year
You can't plan for the new year until you complete these checkups.
A Government Shutdown Could Cost the U.S. Economy $6 Billion a Week, According to EY's Chief Economist
Experts from EY tell Entrepreneur that a government shutdown could leave "a visible mark" on the economy.