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  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