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Ch 16: Small Business Financing

About This Chapter

Consult this small business management chapter to study topics related to small business financing. Use these convenient study tools to prepare for tests, improve your business knowledge, finish homework assignments or improve your grades.

Small Business Financing - Chapter Summary

These small business management lessons explore financing options and financial planning methods that small businesses need to take in order to receive funding and grow. Our expert business instructors walk you through funding opportunities, the financial planning process and sources of long and short-term financing.

These short and informative lessons come with interactive quizzes to help you check your understanding of these financing definitions and concepts. You can complete the chapter at your own pace and use any Internet-connected device to access it. These lessons can help you:

  • Break down a start-up budget
  • Assess various funding opportunities that entrepreneurs can seek
  • Explain the bootstrapping method of funding
  • Evaluate asset-based lending and angel investing in relation to other funding methods
  • Compare sources of short-term and long-term financing, such as bank loans (short) and commercial loans (long)
  • Outline the process of financial planning, including master, cash and capital budget preparation

8 Lessons in Chapter 16: Small Business Financing
Start-Up Budget: Definition & Example

1. Start-Up Budget: Definition & Example

This lesson will define a start-up budget. An example budget will be included and explored, along with a list of items to remember when building the budget.

Funding Opportunities for Entrepreneurs

2. Funding Opportunities for Entrepreneurs

Do you dream of owning your own business? You know that it takes money to get started, but what can you do to raise the cash? This lesson discusses a variety of funding options that are available for entrepreneurs.

Bootstrapping: Definition, Method, Techniques & Example

3. Bootstrapping: Definition, Method, Techniques & Example

Entrepreneurs are often forced to seek creative methods of funding their start-ups. In this lesson, you will learn about a financing option called bootstrapping and how it is used. An example of bootstrapping will also be given.

Asset-Based Lending: Definition & Uses

4. Asset-Based Lending: Definition & Uses

In this lesson, we will see how asset-based lending provides financing options for companies that have assets but are faced with short-term cash flow problems.

Angel Investing: Definition, Benefits & Risks

5. Angel Investing: Definition, Benefits & Risks

Angel investors are a popular resource for funding a new business idea or company start-up. There are some fundamental considerations when deciding to pursue an angel investor. This lesson reviews many of those critical factors.

Sources of Short-Term Financing

6. Sources of Short-Term Financing

Companies often need to utilize financing to cover shortfalls in cash flow. In this lesson, you'll learn about sources of short-term financing available to companies including trade credit, lines of credit, bank loans and credit cards.

Sources of Long-Term Financing

7. Sources of Long-Term Financing

Some businesses require a large amount of capital to get off the ground or expand. In this lesson, you'll learn about sources of long-term financing, including commercial loans, selling equity and issuing debt.

The Financial Planning Process

8. The Financial Planning Process

Financial planning is essential for the success of any business. In this lesson, you'll learn about the financial planning process that businesses perform, including preparation of a master budget, capital budget and cash budget.

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