Issue link: http://cp.revolio.com/i/142672
Business Glossary • ollateral. Specific asset (such as land or building) pledged as C a secondary (and subordinate) security by a borrower or guarantor. • ixed Asset. Land, buildings, equipment, machinery, vehicles, F leasehold improvements, and other such items. Fixed assets are not consumed or sold during the normal course of a business, but their owner uses them to carry on its operations. For information on how to contact an SBIC, check with your local SBA office or go to www.sba.gov/inv. Local organizations. "Your local • Lender. Entity that advances cash to a borrower for a stated period and for a fixed or variable rate of interest, with or without a security other than the borrower's signatures. chamber of commerce or other business group may have some revolving loan funds available to businesses specific to your community," Holmes says. "Generally, these funds come from a variety of local resources and have specific guidelines for their use." Holmes recommends you begin by contacting the director of your local chamber of commerce to see what help might be available for the specific purpose you have in mind. • Principal. Capital as distinct from the income (interest) derived from it. Angel investors. When conventional • ome Equity Loan. Typically, a second mortgage loan secured H by the home equity of the borrower. In case of a default, the first (senior) mortgagee is paid before the second (junior) mortgagee can get anything. Also called home equity debt. Source: www.businessdictionary.com financing options seem out of reach, many small business owners have had success seeking out individuals or commercial lenders willing to invest in a business expansion, either with debt financing or by taking an equity position in the business. When you find an "angel" investor, you'll probably find that this option is more flexible than a bank loan or government program. If you don't know anyone with the economic firepower to fund your financing needs, don't give up. There is an entire industry of professional investors looking for opportunities to invest in growing small businesses. Be advised, though, that unless you're willing to give up an equity position in your practice, working with a professional investor is not for you.