Small Business Encyclopedia

Category: Expansion Financing

Factoring

Definition: 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

Definition: An individual who invests his or her own money in an entrepreneurial company

Friends/Family Financing

Definition: 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

Definition: 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

Definition: 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

Definition: 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

Definition: A loan that allows homeowners to borrow against the equity in their homes

Balloon Loan

Definition: A loan that requires a single, usually final, payment that is much greater than the payment preceding it

Bank Loans

Definition: A loan that a business owners gets from a bank

Debt Financing

Definition: A method of financing in which a company receives a loan and gives its promise to repay the loan

Equity Financing

Definition: 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

Definition: Money borrowed that is usually repaid with interest

Term Loan

Definition: 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

Definition: Term loans from a bank or commercial lending institution that the SBA guarantees as much as 80 percent of the loan principal for

Free Business Tools

Forms

Forms

Download and customize these free forms:

Partnership Agreement

Cashflow Worksheet

Employment Application

Calculators

Calculators

Evaluate and analyze your financials:

Cash Flow

Starting Costs

Discounted Cash Flow

Latest Articles

Brick-and-Mortar Retailers Must Innovate to Flourish in a Digital World
Brick and mortar

Brick-and-Mortar Retailers Must Innovate to Flourish in a Digital World

Are you up to date on the rise of the cloud-connected storefront, combining 'clicks with bricks'?
Daniel Black
5 Ways Your Manufacturing Company Can Sell More
Sales Strategies

5 Ways Your Manufacturing Company Can Sell More

Have you considered a truly interactive digital catalog? Sales plans for each count? The Pareto Principle? Yes, the Pareto Principle!
Danny Wong
Don't Make These 3 Technology Mistakes
Marketing Bootcamp

Don't Make These 3 Technology Mistakes

You first must understand which goals you're trying to achieve before you can cash in on big data and AI .
Venkat Viswanathan
6 Ways High-Octane Leaders Fuel Their Teams to Achieve More
Managing Teams

6 Ways High-Octane Leaders Fuel Their Teams to Achieve More

Invest time and energy in your people to build relationships while you grow your business.
Peter Diamond
Amid EpiPen Furor, a CEO Shows How Not to Swim Against the Tide
Crisis Management

Amid EpiPen Furor, a CEO Shows How Not to Swim Against the Tide

Mylan's crisis response to high EpiPen prices is focused on an important goal: changing the national conversation on health pricing.
Ray Hennessey
Are You a 'Positive' Procrastinator or Just Plain Lazy?
Productivity

Are You a 'Positive' Procrastinator or Just Plain Lazy?

In fact, procrastinators can be highly productive.
Han-Gwon Lung
Score a $75 Gift Card When You Buy This Stealthy Security System, Plus More Deals
Daily Deals

Score a $75 Gift Card When You Buy This Stealthy Security System, Plus More Deals

Our friends at TechBargains have rounded three up can't-miss deals.
Entrepreneur Partner Studio Staff
How This Backpack Startup Is Giving Back
Give Back

How This Backpack Startup Is Giving Back

After seeing kids bring their belongings to camp in trash bags, one couple worried about how those kids would transport their books to school.
Jessica Abo
Earning Customer Loyalty With a Discount Is Not the Same as Competing on Price
Customer Experience

Earning Customer Loyalty With a Discount Is Not the Same as Competing on Price

Cutting prices to stay in business is fatal but giving a good customer a break is just smart marketing.
William Bauer
Going for 'the Gold': What Entrepreneurs Can Learn From Athletes
Inspiration

Going for 'the Gold': What Entrepreneurs Can Learn From Athletes

Here are 4 things that businesspeople have in common with those newly minted Olympic champions.
Jeffrey Hayzlett
4 Ways to Tune Up Your Brand's Intellectual Expression
Make More Happen

4 Ways to Tune Up Your Brand's Intellectual Expression

How to improve your brand by tweaking your sound bites, your biography, your social media profiles and your content creation
Karen Tiber Leland
A 6-Step Checklist to Get Your Online Business Ready for the Holiday Season
Make More Happen

A 6-Step Checklist to Get Your Online Business Ready for the Holiday Season

Waiting too long puts you at a severe disadvantage -- you need to be ready to capitalize on the increased traffic and the mindset of consumers during this period.
Jonathan Long
These Founders Aren't Selling Furniture, They're Telling a Story
Radicals & Visionaries

These Founders Aren't Selling Furniture, They're Telling a Story

A powerful story keeps this furniture company distinct and memorable.
How to Break a Bad Habit -- for Good
Habits

How to Break a Bad Habit -- for Good

Bad habits are hard to break, but only because most people go about it the wrong way.
Travis Bradberry
Richard Branson Blogs About His Near-Death Bike Accident
Radicals & Visionaries

Richard Branson Blogs About His Near-Death Bike Accident

While training on his bicycle, he took a nasty fall that nearly launched him off a cliff.
Dan Bova
More Articles

About Encyclopedia

No matter what business topic you're interested in, you'll find our category list is an easy way to navigate our small-business encyclopedia. From Accounting and Advertising to Location and Operations, every topic offers information on the terms that matter most. And if you can't find what you need here, our "Terms A - Z" list makes tracking down terms a snap.