Browsing: Encyclopedia

When obtaining a loan, an individual is borrowing a certain amount of money. The overall expense of the loan is…

There are two options open to you if you decide to invest in a company: equity (commonly known as stocks…

What is Peer to Peer Lending? Peer-to-peer lending, also known as social network lending, allows borrower members to borrow money through…

In residential lending, the lender determines how much a borrower can afford by calculating his debt-to-income ratio – how much…

A wraparound mortgage, also known as an all-inclusive trust deed, is a creative way to allow you to purchase property without…

Wrap-around mortgage financing is the perfect solution for you if your business has a little business credit history. Most lenders won’t…

A wrap around loan allows you to purchase property without having to qualify for a loan. This can save time, and also…

Venture capital financing can inject your business with the necessary capital.  Venture capital financing can be an outstanding source of capital…

Venture capital equity means investing financial and human capital in partnership with you. Venture capital equity is the business of investing…

Unsecured business loan financing can be used for almost anything surrounding your business including the purchase of equipment, remodeling, office…

Underwriting is the process through which a lender determines if your business is creditworthy and should receive the applied for…

Turnaround financing can improve a dying business. Turnaround financing is for companies that have had a history of bad performance. It…

Takeover financing refers to the funding obtained to gain control over a corporation through the purchase of its stock. The…

Startup loan financing can provide financial flexibility for entrepreneurs. Startup loan financing often includes an unsecured line of credit. This can…

Startup funding helps turn your vision into a reality. Startup funding is necessary for most businesses to get off the ground.…

Startup capital is necessary to start your business. Startup capital is the money needed to begin your business. This would include…

Small business loan is financing for your business success. Small business loan capital is one of the more common methods of…

Small business funding provides working capital for your business through debt or equity financing. Small business funding is readily available to…

Silent partner is a business partner who provides capital but does not participate in the management of the company. Any person…

Seed funding helps companies with a new product launch. Seed funding is most often confused with startup capital, but they are…

Seed capital is money used as the initial investment for a new product or service launch. Seed capital enables businesses to…

Secondary public offering is an excellent method for a company to raise additional working capital Secondary public offering financial moves are…

Secondary financing plays an important role in some commercial real estate transactions. A second trust deed is often utilized to…

Rollover mortgage allows refinancing of loan balance at the current rate. Rollover mortgage is best defined as a short-term loan in…

Risk capital is funding for firms with excellent growth potential. Risk capital is provided most of the time by venture capital…

Revolving line of credit provides capital for your business in times of need.  Revolving line of credit financing can be an…

Revolving collateral allows you to secure a loan. Revolving collateral is a unique way for your business to secure a loan.…

Reverse acquisition allows your private company to go public without regulatory requirements. Reverse acquisition is a technique where a private company…

Receivable factoring allows you to sell invoices for instant capital. Receivable factoring enables your business to have fast access to cash by…

Real estate sale-leaseback financing is when a business sells its commercial property for current market value and then instantly leases…

Real estate purchase loans are typically business loans that are collateralized with commercial real estate. Loans to expand or improve…

Purchase order financing offers quick cash flow reserves. Purchase order financing is an excellent method for a business to obtain quick…

Purchase order factoring – Grow and expand with your business. Purchase order factoring sometimes called “contract funding is great for businesses…

Reverse merger allows your private company to go public. Reverse merger financial transactions are becoming increasingly popular and accepted. It is…

Public shell is a viable alternative to going public Public shell transactions are a widely accepted, alternative means for a private company…

Privatization is defined as the transfer of ownership from the public sector to the private sector. Privatization can also refer to the…

Private equity investments are the most important funding source in the entrepreneurial marketplace. Private equity investments contribute to the funding of around…

Private capital investors refer to private individuals who contribute their skills and money to start-up companies. They often work in…

Primary offering is the initial sale of a company’s stock.  The revenue from the sale of the stock will go straight…

Pre-qualified funding is the process of pre-qualifying your business funding request before you apply. This makes your business look much more…

Preferred debt is debt that the repayment of or lien position takes precedence over other debts. Your first mortgage would be…

Pledging assets is an offering asset to a lender as collateral for a loan. During the period of the loan, the…

PIPE investments (Private Investment in Public Entity) take a sizable position in publicly traded companies whose valuations have dropped since…

A permanent end loan refers to short term financing of real estate construction projects which are then followed by long term financing,…

Paid in capital also known as contributed capital. Paid in capital is the capital a company receives from investors on top of…

Open end credit is an agreement by a lender to lend a specific amount to a borrower and to allow that…

Off-balance-sheet financing is financing from sources other than debt or equity offerings, such as joint ventures, R&D partnerships, and operating leases. …

Nonrecourse debt – A secured loan with no personal liability. Nonrecourse debt is secured by some form of collateral, under which…

Minority business finance is the process of providing working capital to minority-owned businesses either through debt or equity.  It has been shown…

Micro loans provide your business with small capital injections that can really make a huge difference to your company. Typically micro…

Mezzanine finance funding can come in the form of stand-alone subordinated debt or equity transactions. Most often it is found…

Mezzanine financing – Bridging financial gaps Mezzanine financing gives businesses access to capital when a bank won’t finance them initially. It…

Definition of Mezzanine Investment Mezzanine investment financing (also referred to as third-stage capital) refers to a later-stage investment provided to a…

Mezzanine funding, in a generic sense, is a venture capital term used to describe funding for a company that is…

Merger financing enables the combination of two quality companies. Merger financing is a necessity when two companies want to join…

Letter of credit is a document issued by a bank that guarantees the payment of a customer’s drafts for a specified…

Leveraged buyout financing (LBO) is typically provided for the strategic purchase of other product lines, divisions, or companies. They can…

Later stage funding is normally for a company expecting to go public usually within a year. Often this funding is…

Joint venture financing for commercial property Joint venture financing is a means of structuring a mortgage in order to help…

Inventory loan uses your inventory to secure a loan. Inventory loan financing (also known as “Flooring”) is the leveraging of inventory…

Intrastate offering enables your business to sell stock within one state. Intrastate offering financing is a very unique method for…