About This Chapter
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
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.
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Other chapters within the Financial Accounting: Help and Review course
- Introduction to Accounting: Help and Review
- Financial Statements in Accounting: Help and Review
- Mechanics of the Accounting Cycle: Help and Review
- Project Evaluation & Analysis
- Preparing Financial Statements: Help and Review
- Internal Controls in Accounting: Help and Review
- Merchandising Operations and Inventory in Accounting: Help and Review
- Current and Long-Term Liabilities in Accounting: Help and Review
- Adjusting Accounts & Preparing Financial Statements: Help and Review
- Taxation of Business Entities
- Accounting Changes & Errors
- Classifying Costs in Accounting
- Cost Accounting Methods
- Cash Flow Statements & Disclosures
- Asset & Inventory Management
- Small Business Accounting
- Financial Reporting
- Banking, Insurance & Monetary Policy
- Types of Financial Risk
- Credit Risk
- Derivatives in Finance Overview
- Capital Markets in Risk Management
- Managing Financial Risk
- Financial Risk & Decision-Making