About This Chapter
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the VCE Accounting: Exam Prep & Study Guide course
- Establishing a Small Business
- Budgeting in Business
- Overview of Service & Trading Businesses
- Business Analysis Overview
- Price Setting Strategies for Business
- Financial Statements Overview
- Overview of Accounting Basics
- Overview of the Accounting Cycle
- Internal Control Use in Accounting
- Technology in Accounting
- Double-Entry Accounting Overview
- Journals in Accounting
- Accrual-Based Accounting System
- VCE Accounting Flashcards