Financing a Business You Are Starting from Scratch Is Often

question 88

True/False

Financing a business you are starting from scratch is often easier than financing an existing business.

---

Definitions:

Compounded Monthly

A method of calculating interest in which the accrued interest is added to the principal sum at the end of each month, thus interest in the next month is earned on the new sum.

Loan Payments

Regular payments made towards paying off the principal and interest on a loan.

Loan Papers

Official documents that outline the terms, conditions, and agreements of a loan between a borrower and a lender.

Lump-sum Payment

A lump-sum payment is a single payment made at a particular time, as opposed to multiple payments over time.