Finance Terms

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Debt Financing

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Borrowing money from banks or investors; includes issuing bonds.

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Loan

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Money borrowed from a bank, repayable with interest.

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Collateral

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Security for a loan, often property or personal guarantees.

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Factoring

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Selling accounts receivables to access cash quickly.

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Line of Credit

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Ongoing access to a set amount of money from a bank.

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Public Offering (IPO)

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Company sells stock to become publicly traded.

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Shares

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Units of ownership in a company, can be common or preferred.

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Crowdfunding

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Raising capital through small contributions from the public online.