Exam 7: Startup Capital: The Injection

The US Small Business Administration (SBA) can guarantee as much as 85 percent repayment on business loans of up to $150,000 and 75 percent repayment on loans of more than $150,000.

A short-term loan is one that is scheduled to be repaid within a period of one to ten years.

What kinds of loan services do banks provide for new ventures? Describe four of them.

Warehouse-receipt loans are typically used for ______________ that are ______________, allowing the business to buy back portions of the loan as they sell the merchandise.

A venture capitalist will generally see from 50 to 100 proposals a month. Out of that number, 1 may be funded.

______________ are self-liquidating loans, commonly used for both seasonal financing and building up inventories.

Which of the following is an informal agreement or understanding between a borrower and a bank that does legally commit the bank to a maximum amount of credit that the bank will provide to the borrower?

The U.S. Small Business Administration (SBA) was established by Congress for the purpose of:

Briefly discuss the positive and negative aspects of crowdfunding and how it can assist a small venture seeking startup capital.

______________ differ from other financial sources in that they buy accounts receivable, meaning that they purchase them without recourse in the case that a person who owes an ac?count receivable does not pay.

___________ seek(s) funding for a new venture by raising monetary contributions from a large number of people in the general public via the internet.

There are only two basic sources of venture financing: Debt and Ownership Equity.

Even with a well-prepared business plan, it takes an average of __________ from initial contact to raise venture capital.

Explain how new ventures use the following capital sources: internal funds, trade credit, and equity sources

Under a line of credit, a bank is legally obliged to provide the capital stated in the agreement.