Economic terms you should know:
l Asset finance refers to a secured business loan in which the borrower pledges collateral for any assets used in the day-to-day running of a business. It's also known as commercial finance or asset-based lending. Lending is done against inventories as opposed to cash flow.
l Niche market is a small but potentially profitable market segment where custom-made products are designed for different businesses. Niche marketers usually rely on customer loyalty to maintain a profitable volume of sales.
l Market share refers to the volume of sales achieved by one company in a geographic area as a percentage of all sales of similar products by similar companies in the area.
l A commercial loan is one granted to a company to meet its business operating expenses or to finance the purchase of inventory.
l Bridging finance is meant to provide financial assistance to small and medium entrepreneurs who have secured fixed contracts, such as a contract for construction work.
l Black economic empowerment (BEE) is a socioeconomic process that contributes to the economic transformation of South Africa. It seeks to bring about a significant increase in the number of black people who manage, own and control the country's economy and also to play a role in reducing unemployment and income inequalities.
l An emerging enterprise is an enterprise that is owned, managed and controlled by previously disadvantaged individuals and which is overcoming apartheid business impediments.
Glossary of economic terminology
Economic terms you should know:
l Asset finance refers to a secured business loan in which the borrower pledges collateral for any assets used in the day-to-day running of a business. It's also known as commercial finance or asset-based lending. Lending is done against inventories as opposed to cash flow.
l Niche market is a small but potentially profitable market segment where custom-made products are designed for different businesses. Niche marketers usually rely on customer loyalty to maintain a profitable volume of sales.
l Market share refers to the volume of sales achieved by one company in a geographic area as a percentage of all sales of similar products by similar companies in the area.
l A commercial loan is one granted to a company to meet its business operating expenses or to finance the purchase of inventory.
l Bridging finance is meant to provide financial assistance to small and medium entrepreneurs who have secured fixed contracts, such as a contract for construction work.
l Black economic empowerment (BEE) is a socioeconomic process that contributes to the economic transformation of South Africa. It seeks to bring about a significant increase in the number of black people who manage, own and control the country's economy and also to play a role in reducing unemployment and income inequalities.
l An emerging enterprise is an enterprise that is owned, managed and controlled by previously disadvantaged individuals and which is overcoming apartheid business impediments.