Got our second test grades back. 86%, not as good as the last one, but good enough to be exempt from the final. I’ll take it.Debt and Equity financing.
Important terms
- Equity Financing
- Debt Financing
- Venture Capital
- Angel Financing — Rich person helps you
- Loan
- Debt Security
- Collateral
- Lien — Attachment to property preventing sale.
- Prime Rate
- AAA — Highest rating on bonds given by bond agencies
- Bond — A debt instrument.
- HELOC — Home Equity Line of Credit. Open-ended loan based on the equity you have in your home. Second mortgage, essentially.
- FICO — Your credit rating. Measure of a lender’s risk.
Angel Financiers are individuals who finance businesses from personal assets. Often family. Be careful with this.