Vocabulary

to benefit – извлекать пользу, выгоду

economies of scale – экономия, обусловленная ростом масштабов производства, экономия от масштаба, эффект масштаба

to incline to – располагать к

to lend – давать взаймы; ссужать, давать под проценты

funds – денежные средства, деньги

rate of interest – процент, процентная ставка, норма процента

to buy securities – покупать ценные бумаги

to threaten – грозить, угрожать

to withdraw a business – ликвидировать дело, предприятие

to settle a debt – погасить, выплатить долг

to pay a bill – оплатить счет; урегулировать платеж по счету

to set up a firm – создавать фирму, компанию

competitor – конкурент; противник, соперник

sophisticated technological equipment – усложненное технологическое оборудование

advertising cost – затраты на рекламу, рекламные издержки

output – продукция; продукт, изделие; выпуск

burden – ноша, груз; накладные расходы

Starting-up financing

The young businessman must find sources of money that will last until revenue begins to exceed cash outflows. He must be creative in finding start-up funding. New small businesses can start with the businessman's own assets. On top of that, start-up financing may come from friends and relatives. The larger businesses can obtain funds from venture capital investors.

One of the personal assets the businessman can use to raise funds for the business is his home. The value of the home that the owner has paid for is called the owner's equity in the home. By pledging this equity, the homeowner can obtain a second mortgage or a home equity loan.

A businessman can find another source of start-up financing by a life insurance policy. Many policies build up cash surrender value – the money that the policy holder can borrow at a low interest rate. Those who need more funds can obtain a variable rate installment loan. It is a personal loan with an interest rate tied to the prime rate or some other index. When the index changes the rate changes in the same direction.

Some good sources of start-up funds are family members and friends. Many people can afford to lend at a low interest rate. The lender can share ownership of the business or can become a partner or shareholder in a corporation.

In some cases new companies can obtain cash from venture capital firms. These financial intermediaries specialize in funding ventures with good promise and invest in businesses which generate high profits within five years. Initially venture capital firms invested in high-tech industries, but now other branches enjoy this kind of financial aid, especially those working in the health-care field. The venture capital firms provide seed money to start a new company funds to help the venture grow and gain the market and money to buy out a business.

Vocabulary

revenue – доход; выручка

to exceed cash flow – превышать движение денежной наличности

assets – активы, средства, фонды, авуары

to obtain funds – привлекать средства

to raise funds – получать деньги; мобилизовать капитал; получать ссуду

owner – владелец; собственник, хозяин

to plege – отдавать в залог, закладывать

to obtain a mortgage – получить закладную; ипотеку

life insurance policy – полис страхования жизни

cash surrender value – выкупная стоимость

policy holder – держатель страхового полиса, страхователь

interest rate – ставка процента, ссудный процент

installment loan – личный кредит, ссуда с погашением в рассрочку

prime rate – прайм-рейт, учетная ставка

lender – заимодавец, кредитор; ростовщик

ownership – собственность; владение, имущество; право собственности

financial intermediary – финансовый посредник

to generate high profits – приносить огромную прибыль, доход

to provide seed money – предоставлять, обеспечивать начальные инвестиции

to gain the market – завоевывать рынок

to buy out a business – купить предприятие