Access to Capital Glossary


Income Statement

An income statement (also known as a 'profit and loss' statement) tallies the total revenue, expenses, gains, and losses. This statement shows you where money is moving in and out of your business. Over time, your income statements can be taken together to help you forecast future earnings and spending.


Insolvency is the inability of a borrower to meet financial obligations with the lender(s) as payments become due. Insolvency may result in legal actions and assets may be liquidated to pay debts. The lender's rights in insolvency proceedings are included in the documentation of the original loan.

Installment Loan

In an installment loan, the interest amount is included in the principal loan amount, and the borrower repays the debt periodically.

Interest Rate

An interest rate is the percentage of money paid by the borrower to use the money provided by a the lender. Normally, loan interest is expressed in APR, which is the interest rate compounded monthly.


Merchandise that is purchased and/or produced and stored for eventual sale

Inventory Financing

You can borrow money based on your existing inventory. As you sell the inventory, you use your revenue to pay the loan. Some inventory financing companies will provide you with cash up front to purchase inventory.


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