Money owed by customers (individuals or corporations) to another entity in exchange for goods or services that have been delivered or used, but not yet paid for. Receivables usually come in the form of operating lines of credit and are usually due within a relatively short time period, ranging from a few days to a year. On a public company's balance sheet, accounts receivable is often recorded as an asset because this represents a legal obligation for the customer to remit cash for its short-term debts

A business loan where the borrower pledges as collateral for the loan any assets used in the conduct of his or her business. Funds are used for business related expenses. All asset-based loans are secured.

A loan made by a bank; to be repaid with interest on or before a fixed date. A loan is a type of debt. All material things can be lent but this article focuses exclusively on monetary loans. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.

Loans made to corporations and partnerships, as distinct from consumer loans or personal loans. A Term Loan provides financing for short-term working capital or long-term capital improvements, and is repaid in a lump sum. A Line of Credit allows businesses to borrow repeatedly up to a certain amount. Most lenders ask for business financial statements, and many want personal guarantees, even when making loans to established small businesses.

Raising and managing of funds by business organizations. Such activities are usually the concern of senior managers, who must use financial forecasting to develop a long-term plan for the firm. Shorter-term budgets are then devised to meet the plan's goals. When a company plans to expand, it may rely on cash reserves, expected increases in sales, or bank loans and trade credits extended by suppliers. Managers may also decide to raise long-term capital in the form of either debt (bonds) or equity (stock). The value of the company's stock is a constant concern, and managers must decide whether to reinvest profits or to pay dividends. Other duties of financial managers include managing accounts receivable and fixing the optimum level of inventories. When deciding how to deploy corporate assets to increase growth, financial managers must also consider the benefits of mergers and acquisitions, analyzing economies of scale and the ability of businesses to complement each other.

When a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the borrowed money, along with interest, at a predetermined date in the future.

A loan that is made to an individual or a company over a short period of time, typically 12 months or less.

A secured business loan in which the borrower pledges as collateral any assets used in the conduct of his/her business. also called asset-based lending or asset-based finance.

An entity that lends money to individuals or businesses as part of its normal business operations.

Short-term (typically 90-day) renewable loan to finance the seasonal Working Capital needs of a business, such as purchase of inventory or production and distribution of goods. Commercial loans-shown on the balance sheet as notes payable-rank second only to Trade Credit in importance as a source of short-term financing. Interest is based on the prime rate.

Securement of funds from outside sources such as by borrowing or by attracting equity control. Use of leverage to improve the profitability of a business. Achievement of an investment return on the borrowed funds at a higher rate than the interest being paid for the use of the funds.

Borrowing from a financial institution, finance or acceptance company to purchase machinery or equipment, and using that equipment as collateral.

The selling of a company's accounts receivable, at a discount, to a factor, who then assumes the credit risk of the account debtors and receives cash as the debtors settle their accounts. also called accounts receivable financing.

A permit granted by the Secretary of State authorizing an out-of-state corporation to conduct its business within that given state.

Factoring freight bills offers a number of advantages over conventional business loans. It is easy to get and can be set up quickly, usually in a matter of days. But unlike a line of credit which usually has limits, invoice factoring has none. It is tied directly to your sales and your growth. In other words, your financing line is directly based on your ability to grow your trucking company or freight brokerage.

A system of finance or revenue by which provision is made for paying the interest or principal of a public debt.

It is a type of business financing which involves selling a company's accounts receivables, at a discount, to a financing company. The financing company can take on the credit risk of a company's debtors and will get paid back when debtors settle the full amount of their invoice.

A company specializing in the lending of money to consumers, the purchasing of accounts receivable, and the extension of credit to businesses.

Availability of funds by the lender based on the account debtor's ability to pay.

A business training program for persons interested in developing small businesses. It provides core instruction to the elements needed to produce a business plan and also covers finances, advertising, market research, cash flow projections and business management. As part of the program, emphasis is placed on developing leadership skills, improving communications, time management, organizational skills and building self-esteem.

A small business may be defined as a business with a small number of employees. The legal definition of "small" often varies by country and industry, but is generally under 100 employees in the United States while under 50 employees in the European Union (In comparison, the American definition of mid-sized business by the number of employees is generally under 500 while 250 is for that of European Union). These businesses are normally privately owned corporations, partnerships, or sole proprietorships.

Money borrowed on the basis of finished inventory. The loan is paid as inventory is sold.

Financing often includes an unsecured line of credit. This can have many distinct advantages to any entrepreneur. A startup loan can be used for a variety of general business expenses including the purchase of new and improved equipment, remodeling, expansion of commercial location, new software, or marketing expenses.

Current assets minus current liabilities. Working capital measures how much in liquid assets a company has available to build its business. The number can be positive or negative, depending on how much debt the company is carrying. In general, companies that have a lot of working capital will be more successful since they can expand and improve their operations. Companies with negative working capital may lack the funds necessary for growth. also called net current assets or current capital.