Owning your future- ch 13 FINANCING

Start up has two components

Liabilities are 200,000, assets are 250,000- equity is

Property or assets you pledge is called

Borrowing money increases your debt, which is the same as a libability

Borrowing money for a business increases

Using your personal savings to start a business has NO major disadvantages

You would borrow money for

A good bank debt ratio is typically

Many experts say the emergency fund should be

Borrowing money to start a new business is referred to as

It should be easy to get a loan with a credit score of 600 or less

At some point, most entrepreneurs will need some type of financing

An emergency fund is the amount of money that a business should have available in the

Venture capitals invest in less than 1% of the businesses they consider

Starting a business by yourself- withOUT outside investment

An individual that will sign a loan agreement with you is

Major source of debt financing is a bank

Major sources of equity financing

The one time sum required to set up a business and cover start up costs

Unlike a bank, a credit union will not ask for collateral or a co signer