| A | B |
|---|
| bootstrapping | operating a business as frugally as possible and cutting all unnecessary expenses |
| factor | an agent who handles another person's business tranactions for a fee |
| equity | ownership |
| risk capital | equity funding |
| angels | coined term for nonprofessional investors who tend to put their money into local businesses |
| venture capitalists | individuals or firms that invest capital professionally |
| line of credit | an amount of money that a bank agrees to lend a business at a certain interest rate |
| trade credit | credit obtained from within one's industry or trade, usually from one's suppliers |
| capacity | element of a legal contract stating that you are legally able to enter into a binding agreement |
| collateral | items of value that a lender can claim if a business doesn't repay its loan |
| due dilligence | background checks on a business, its owners, and its team |
| private placement | a way to raise capital by selling ownership interests of a private corporation or partnership |
| initial public offering (IPO) | the selling of a company's stock on a public stock exchange |
| stock | certificates indicating the amount of equity each investor has in a business |
| working capital | the amounf of cash a business needs in order to carry on with its daily operations |
| contingency funds | extra funds that are calculated into the start-up needs and can be used to cover unforeseen business expenses |
