Friday, May 16th 2008
Loan Terms Glossary

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Term Definition
SharesShares are issued by a company to raise money. Unlike bonds, which are a straightforward loan, shares give you ownership of part of the company. Most shares are listed on a stock exchange, which makes them easy to buy and sell, although dealing costs may be expensive, which is another attraction of investing in a unit trust as the costs are shared with lots of others.
 
Start-up Business LoanNew businesses all begin with some form of first time business loans or financing. Many of todays major companies, including GE, Fed-Ex, Motorola and others all began as start-up businesses requiring first time business loans. These loans can occur several ways, including credit card financing, family or angel investors, venture capital funding or through unique financing processes. As a first time business borrower, you can rely on CSG to assist your borrowing needs in an ethical and efficient manner.
 
TitleThe legal document conferring ownership of a piece of real estate.
 
Upfront FeesFees charged to pay for third party costs like appraisals.
 
Variable RateAn interest rate that can move up or down at any time. Usually linked to changes in the Prime Rate or LIBOR, a Variable Rate financing can provide benefits for a start-up venture if structured properly.
 
Venture CapitalCapital or monies made available for start-up firms and/or other business ventures with growth potential. Capital Sources Group prides itself in aligning the right project (after strong review) with the proper venture capital form or party. Venture Capital is the process by which investors fund early stage, more risk oriented business endeavors. A venture capital funding arrangement will typically entail relinquishing some level of ownership and control of the business. Offsetting the high risk the investor takes is the promise of high return on the investment. Start-up companies that receive venture capital are perceived to have excellent growth prospects but don't have access to capital markets because they are private companies. In return for venture capital, investors may receive a say in the company's management, as well as some combination of profits, preferred shares or royalties. Sources of venture capital include wealthy individual investors, investment banks, and other financial institutions that pool investments in venture-capital funds or limited partnerships
 
YieldThe amount of income an investment delivers after deduction of charges (but not tax) expressed as a percentage of the amount invested. Usually expressed as an annual figure - e.g. "the fund's estimated gross yield is 12%
 


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Glossary V1.9.2

 

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