| A | B |
|---|
| bootstrapping | operating frugally |
| factor | agent who takes a fee |
| equity | a portion of ownership |
| risk capital | equity funding |
| angels | nonprofessional investors who invest in local businesses |
| venture capitalist | individual or firms that invest professionally in businesses |
| line of credit | amount of money lent at set rate, taken as needed |
| trade credit | credit obtained from within one's industry or trade |
| capacity | ability to repay loan |
| collateral | item of value lenders will take if you don't pay |
| due diligence | background checks on business and owners |
| private placement | a way to raise capital by selling ownership interests of a private corporation or partnership. |
| initial public offering | selling of company stock on a public exchange for the first time |
| stock | certificate showing how much equity each investor has |
| working capital | cash you need to operate |
| contingency funds | money set aside to deal with unforeseen circumstances |
