Business Financing Concepts

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Angel Investor

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An individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

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Bootstrapping

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Starting a business with minimal financial resources or external funding.

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Closed-End Credit

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A type of credit that must be paid back in full by a set date, with regular payments.

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Credit Report

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A detailed report of an individual's credit history used by lenders to determine creditworthiness.

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Credit Score

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A numerical expression based on a level analysis of a person's credit files, representing the creditworthiness of an individual.

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Crowdfunding

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Raising small amounts of money from a large number of people, typically via the Internet, to fund a project or venture.

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Crowdsourcing

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Obtaining information or input into a task or project by enlisting the services of a large number of people, typically via the Internet.

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Debt Financing

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Raising funds for a business by borrowing money that must be repaid over time, with interest.

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Equity Financing

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Raising capital through the sale of shares in a company.

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Open-End Credit

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A type of credit that does not have a fixed number of payments, such as credit cards.