Collateral refers to an asset or property that is pledged as security for a loan or other financial obligation. The collateral provides a lender with a form of protection in case the borrower is unable to repay the loan, as the lender may seize the collateral and sell it to recoup some or all of…
A chargeback is a transaction reversal initiated by a cardholder, in which a bank or financial institution refunds a disputed charge to the cardholder’s account. Chargebacks are typically used to protect consumers from fraudulent or unauthorized transactions and can be initiated for a variety of reasons, such as product not received, product not as described,…
Cash at hand, also known as “petty cash,” refers to the physical currency that a business keeps on hand for small purchases or unexpected expenses. It is typically a small amount of cash that is stored in a safe or petty cash box and is used to pay for items such as office supplies, postage,…
Cash in bank refers to the amount of money that a business or individual has deposited in one or more bank accounts that can be accessed and used for various purposes. This can include checking accounts, savings accounts, money market accounts, and other types of deposit accounts. Cash in bank is an important metric for…
A business plan is a formal written document that describes the goals, strategies, and operations of a business. It outlines the business’s products or services, target market, competition, marketing and sales strategies, financial projections, and management structure. A business plan is an important tool for entrepreneurs who are starting a new business or seeking funding…
A business entity is a legally recognized structure or organization that is established to conduct business activities. The term “entity” refers to an organization that is separate from its owners or members, and has its own legal identity and liabilities. In other words, a business entity is a distinct legal and financial entity, separate from…
A business credit score is a numerical representation of a business’s creditworthiness and its ability to repay its debts on time. It provides an assessment of the credit risk associated with a particular business entity. It is commonly used by lenders, suppliers, and other financial institutions when making decisions about extending credit or entering into…
A budget is a strategy for making calculations over a specified period, generally a year or a month, that are typically financial. A budget may include projected sales and revenue levels, resource quantities such as time, costs, and expenses, environmental impacts such as greenhouse gas emissions, other impacts, assets, liabilities, and cash flow. Budgets help…
Bootstrapping refers to the process of starting and growing a business using one’s resources, with minimal or no reliance on external funding from investors, venture capitalists, or other sources. Bootstrapping typically involves operating on a lean budget, with a focus on minimizing costs, maximizing revenue, and reinvesting profits back into the business. Bootstrapping can involve…
Bankruptcy is a legal process that allows individuals or businesses that are unable to pay their debts to either eliminate those debts or restructure their payment obligations in a manageable way. Bankruptcy is governed by federal law, and there are several types of bankruptcy proceedings available, depending on the debtor’s circumstances and goals. The bankruptcy…
