Credit vocabulary words Microenterprise

Equipment, inventory or other goods that are pledged to the bank in the case the company can’t make a loan payment.at are pledged to the bank in the case the company can’t make a loan payment.

Equipment, inventory or other

the bank in the case the company can’t make a loan payment.

• Assets

• Securities

• Collateral

• Liquid Assets

The right to take possession of collateral until a debt is repaid.

• Lien

• Mortgage

• Assets

• Deductible

Individuals who make small investments in an enterprise or to support an entrepreneur where they do not expect an immediate or large return on investment. They are typically “friends and family,” individuals who know the business owner and want the owner to succeed.

• Covered Loss

• Securities

• Crowdfunding

• Angel Investors

The amount that an insurance company makes a policyholder pay as part of any claim. Example I had a fire last year where there was $20,000 of damage to my store. I had to pay for the first $500 of damage, then my insurance company reimbursed me for the other $19,500 in damages.

• Dividend

• Securities

• Deductible

• Share

Failure to repay a loan.

• Default

• Credit-Worthy

• Covered Loss

• Differentiated Offering

Crowdfunding is an Internet phenomenon, where strangers learn about a business online and then decide whether or not to make an investment. Investors are typically “fans” of the owner, but they do expect a return on investment.

• Angel Investors

• Crowdfunding

• Stockholders

• Insurance Adjustors

Money owed by a company to a supplier. Example: "I purchased $20,000 of beauty supplies for my big sidewalk sale. My supplier gave me 60 days to pay for this huge order. ."

• Bank Loan

• Accounts Receivable

• Bond

• Accounts Payable

A determination of how many units are needed to sell in order to pay for all fixed costs. Example 1: "That equipment costs $4,000. The contribution margin for each item it makes is $10. I will need to sell 400 items to Example 2: "My overhead expenses are $50,000. The contribution margin on each item I sell is $50. I will need to sell 1,000 items for my company."

• Bond

• Breakeven Analysis

• Brokerage

• Bank Loan

Total Revenues minus Total Cost minus one-time expenditures (called “capital expenditures”) on equipment you will use for many years.

• Cash Flow

• Cost of Goods Sold

• Capital or Equity

• Cost of Goods Sold

Money owed by a customer to a company. Example: "I sold the new computer system to my client for $20,000. They made an initial payment of $1,000 and now owe me $19,000, which they've promised to pay in 30 days.

• Bank Loan

• Accounts Receivable

• Bond

• Accounts Payable