| A | B |
|---|
| Angels | Coined term for nonprofessional investors who tend to put their money into local businesses. |
| Bootstrapping | Operating a business as frugally as possible and cutting all unnecessary expenses. |
| 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 does not repay its loan. |
| Contingency Funds | Extra funds that are calculated into the start-up needs, and can be used to cover unforeseen business expenses. |
| Due Diligence | Background checks on a business, its owner, and its team. |
| Equity | Ownership. |
| Factor | An agent who handles another person’s business transactions for a fee. |
| Initial Public Offering (IPO) | The selling of a company’s stock on a public stock exchange. |
| Line of Credit | An amount of money that a bank agrees to lend a business at a certain interest rate. |
| Private Placement | A way to raise capital by selling ownership interests of a private corporation or partnership. |
| Risk Capital | Equity funding. |
| Stock | Certificates indicating the amount of equity each investor has in a business. |
| Trade Credit | Credit obtained from within one’s industry or trade, usually from one’s suppliers. |
| Venture Capitalists | Individuals or firms that invest capital professionally. |
| Working Capital | The amount of cash a business needs in order to carry on with its daily operations. |
