Collateral
Collateral is a form of business financing where a borrower pledges an asset, such
as property or equipment, as security for a loan. If the borrower defaults on the
loan, the lender can seize the asset to recover the loan amount.
Capital
Capital in business financing refers to the money a business needs to start,
operate, and grow. It can come from a variety of sources, such as investors,
lenders, or the business owners themselves.
Condition
Business condition in business financing refers to the financial and operational
state of a business that may affect the ability to obtain financing from lenders.
This includes factors such as cash flow, profitability, creditworthiness, and industry
risks.
Capacity
Business capacity is the ability of a business to increase its output and income in
order to generate sufficient cash flow to repay any financing that it may have
obtained. It is based on the financial strength of the business, its ability to
generate revenue, and its ability to manage finances responsibly.
Cash Flow
Cash flow in business financing is the amount of money coming in and out of a
business over a period of time. It is important for companies to monitor their cash
flow to ensure that expenses are being paid and that the company is able to meet
its financial obligations.
