Increasing business acumen is crucial for growth.
But what’s the best way to get started? Learning some basic business terminology is a good start. It’s a self-learning process, and it’ll only take a short time. With a little immersion into industry lingo, you’ll be able to converse with all sorts of people in the world of commerce.
This article attempts to explain some commonly used business jargon, particularly relating to Alternative Funding, which aims to assist small business owners in improving their business acumen.
Purchase Order
A Purchase Order is a commercial document issued by buyers to sellers with the type, quantity and price of products and services to be purchased/bought by the buyer and delivered by the seller.
Contract:
A written agreement between two or more parties imposing mutual legal obligations. You can have an oral contract, but these are more challenging to enforce and should be avoided if possible.
Merchant Cash Advance:
A Merchant Cash Advance is a product available to businesses that sell to end-consumers, (e.g. clothing stores, hair salons, restaurants and doctors rooms) by giving the business a cash advance against predicted future sales based on historical credit or debit card sales.
Transaction:
A transaction is a type of business, for example, an act of buying or selling goods or services.
Alternative Funding:
Simply put, alternative funding is gaining financing for your company outside of traditional bank loans to gain capital.
Scale your Business:
Scaling a business is not the same as growing a business. Scaling your business means you’re able to handle an increase in sales, work, or output in a cost-effective, reasonable manner.
With this novel twist on the phrase, “there you have it,” we hope you managed to learn some of the key business terms for small business owners.
Now that you know a little more about Funding and how important it is to get funding to grow your business, feel free to explore our website for any potential funding opportunities that can help you scale and grow your business.
