BUSN 1101 Chapter Notes - Chapter 13: Unsecured Debt, Commercial Bank, Amortization Schedule
31 Aug 2016
School
Department
Course
Professor
Document Summary
Section 4: the role of the financial manager. Financial plan - planning document that shows the amount of funds a company needs and details a strategy for getting those funds. If a new business hopes to get funding, it should prepare a financial plan. Common sources of funding for new businesses include personal assets, loans from family and friends, and bank loans. One needs to estimate sales for his/her first year of operation. To predict sales, you"ll need to estimate 2 figures: The number of loads of laundry that you"ll handle. The price that you"ll charger per load. Small businesses get the most funding from credit cards, commercial bank loans, leasing, vendor credits, asset-based loans, angel investors, personal/home equity loans, privated loan, sba-guaranteed loan, venture capital, private placement, and ipo. Maturity - period for which a bank loan is issued. Short-term loan - loan issued with a maturity date of less than one year.
