In this lesson we'll look at vocabulary related to company financing

companies may seek ongoing funding through debt financing or loans which require collateral or

They may use factoring and lines of credit to access cash quickly other

sources of funds include crowdfunding and

public offerings in which a company sells shares

debt financing debt financing

Debt financing is when a company borrows money from a bank or other lender

debt financing also includes issuing bonds to individuals or institutional investors

Debt financing has helped drive our company's growth, and hopefully we can pay off the banks in a reasonable amount of time

oh loan loan

The money a company borrows from a bank to fund growth is called a loan

borrower must pay back the amount borrowed plus interest within a specified period of time

The bank offered us pretty good terms on a loan to help build our new factory

Collateral Collateral

[thanks] sometimes require security for a loan [in] the form of collateral

Which can include items like property and personal guarantees?

To get a loan from the bank [I] had to put up my house as collateral

all factoring factoring

Factoring is when a company sells its accounts receivables or invoices to another company before they are due

By selling its invoices the company does not have to wait until they [are] paid for the invoices

Factoring may be great if you're looking for quick cash, but you might just be postponing your cash flow problems

oh

Line of Credit Line of Credit

A line of credit is ongoing access to a certain amount of money from a bank

Based on our strong performance last year. We were able to get a line of credit from our bank

public offering iPo

a public offering or iPo

Is when a company first offers to sell stock or ownership and become publicly traded

I pos may be used by relatively new companies or established private businesses

alibaba.com

Have had the biggest public offering so far this year raising just over [25] billion dollars

chairs

preferred stock common stock shares

Are units of ownership in a company which can be bought and sold and may earn dividends?

Preferred stock are more secure shares that earn dividends and are paid out before common stock

To fund our expansion into Asia we'll be issuing new Shares in the fall

oh

[our] funding crowdfunding

Our funding is a method of raising capital from the public

Often and online platforms such as kickstarter helps connect new companies with lots of small investors

I was turned down for a loan but with crowdfunding I got enough capital to start production

Now it's your turn to practice some of the words. We've looked at in this lesson in a moment

You'll hear a series of sentences with a word replaced with a beep

Repeat each sentence

including the missing word

For example if you hear we were fortunate to get funding from an Angel

early on

You can say we were fortunate to get funding from an angel investor early on

We'll provide the [answer] after each question ready. Let's give it a go

If we don't get approval from the bank for this we're in big trouble

Answer if we don't get approval from the bank for this loan. We're in big trouble

With so much great media attention our public was a huge success

Answer with so much great media attention our public offering was a huge success

With social media anyone can now raise money for a business through

Answer with social media anyone can now raise money for a business through crowdfunding

That's all for this episode of video vocab be sure to check out our web site at

www.english

- you again soon