Ch 2: Funding for Small Businesses

About This Chapter

Use this chapter to develop a deeper understanding of how small businesses apply budgeting and financial planning processes. These lessons can be used as preparatory tools for accounting, finance or business class discussions, tests or student assessment exams.

Funding for Small Businesses - Chapter Summary

From start-up budgets to long-term financing solutions, this chapter offers an in-depth look at ways in which small businesses fund their operations. Short video and text lessons define terms and methods and use detailed examples to clarify information about funding, investing and lending processes.

You will also learn more about various financial institutions in Australia and how businesses can turn to them for funding purposes. After you have reviewed all of the lessons contained in this chapter, you should be able to:

  • Explain what a start-up budget is and list items needed to build this type of budget
  • Identify funding options available to entrepreneurs
  • Define and explain methods of bootstrapping
  • Understand the use of asset-based lending
  • Detail the benefits and risks of angel investing
  • Name source of short- and long-term financing for small businesses
  • Describe the financial planning process for budgeting
  • List and describe the functions of various Australian financial institutions

Lessons provide a quick and effective way you can review what you might already know or learn new facts about small business funding. You will learn from instructors with backgrounds in finance or accounting, who break down each topic in simple terms and with useful examples. Learn at your own pace with 24/7 lesson accessibility and take self-assessment quizzes to fully realize how much you have retained from each lesson.

9 Lessons in Chapter 2: Funding for Small Businesses
Test your knowledge with a 30-question chapter practice test
Start-Up Budget: Definition & Example

1. Start-Up Budget: Definition & Example

This lesson will define a start-up budget. We'll look at an example budget from the perspective of a potential lender, 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.

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. After watching the video, check out the quiz questions for more practice on the use of asset-based lending.

Angel Investing: Definition, Benefits & Risks

5. Angel Investing: Definition, Benefits & Risks

Angel investors are a popular resource for funding a new business idea or start-up company. There are some fundamental considerations when pursuing angel investors. This lesson reviews many of those 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.

Financial Institutions in Australia

9. Financial Institutions in Australia

In this lesson, we discuss financial institutions in Australia, including banks, investment banks, finance companies, superannuation funds, life insurance companies, unit trusts, and the Australian Securities Exchange in business finance.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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