This lesson introduces essential vocabulary for understanding how companies raise money, covering various methods like debt financing, loans, factoring, lines of credit, public offerings, and crowdfunding.
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You're watching Video Vocab by Business English Pod.com
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
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
With so much great media attention our public was a huge success
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
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