Econ Indicators, Bus Financing Options and Cash Flow

A long-term loan from the Small Business Administration

• Asset-based loan

• 504 loan

• Crowdfunding

• Bank term loan

A person who contributes his/her own money as start-up capital for a business, usually in exchange for a share of ownership.

• Angel investor

• Venture capitalist

• Bank lender

• Equipment leasor

A loan that is secured by things the company owns, such as equipment, real estate, or vehicles.

• Equipment lease

• Asset-based loan

• Institutional venture capital

• Bank term loan

A bank term loan

• usually is backed by the Federal government

• usually is backed by a company's future earnings

• usually has a variable interest rate and is open-ended

• usually has a fixed interest rate for a pre-determined period of time

A business owner can improve cash flow by (check all that apply):

• extending extra credit to customers, giving them more time to pay

• buying enough inventory to last a year

• buying just enough inventory to meet current needs

• contacting customers to get them to pay their bills faster

• ending relationships with non-paying customers

An entrepreneur may turn to ________________ to finance a business if he/she wants to use social media to appeal to a large number of individual investors, including family, friends, colleagues and others.

• An SBA loan

• Angel Investors

• Crowdfunding

• Equipment leasing

When the construction company owner obtained the use of a new cement-mixer, with an agreement to pay for it over time, she was using ___________ to finance the purchase.

• equipment leasing

• asset-based loan

• crowdfunding

• 504 loan

___________ are a group of investors, investment bankers and other financial institutions that typically invest large sums of money in start-up firms or small businesses that offer long-term growth potential.

• Angel Investors

• Institutional Venture Capitalists

• Community Development Financial Institutions

• Crowdfunders

An organization that provides financial services specifically to underserved areas is

• Institutional Venture Capital firm

• Angel Investor group

• Federal Government Venture Capital firm

• Community Development Financial Institution

A loan from the US government to develop a start-up business is called___________________.

• an SBA loan

• Federal Government Venture Capital

• 504 loan

• Asset-based loan