Asset-based lending involves providing loans secured by collateral, typically used by businesses to cover short-term cash flow needs. Collateral for these loans can include inventory, accounts receivable, equipment, or other owned property.

The factors that drive how salable the business will be after its near term succession, i.e., a follow up sale, such as post employee ownership conversion.

A CDC is a nonprofit, community-based organization with one-third of board typically composed of community residents focused on low-income, underserved neighborhoods.

CLTs are nonprofit, community-based organizations designed to ensure community stewardship of land.

The accounts receivable turnover ratio assesses how efficiently a company collects its average accounts receivable balance. Calculated by dividing net credit sales by average accounts receivable, this ratio reflects how quickly credit sales are converted into cash

A commercial loan is a debt-based funding arrangement between a business and a financial institution such as a bank.

CMF awards competitive grants to CDFIs for affordable housing and economic development projects.

A chart of accounts is a list of categories that bookkeepers and accountants use to classify all accounting transactions. All accounts in the chart of accounts fall into one of the five categories: Income, Expense, Asset, Liability, or Equity.

Transferable value refers to the value derived from financial performance of a business that is not tied to a specific individual or the original owner

A Zebra Company represents a humane alternative to traditional tech unicorns. Unlike unicorns that prioritize maximizing shareholder value, zebras focus on principles like mutualism, shared property, and multi-stakeholder value.

Net profit margin, or net margin, expresses a company's net income as a percentage of its revenue. This metric provides insight into how efficiently sales translate into actual profit after accounting for all expenses, including COGS, operational costs, interest, and taxes.

a financial services company that acts as an intermediary in large and complex financial transactions; usually involved when a startup company prepares for its launch of an IPO and during strategic M&A; or as a broker or financial adviser for large institutional clients

An SOP is a set of instructions used to train employees to complete a task; SOP's are the foundation of building a business that can thrive without the creator of those procedures, which gives those individuals more freedom to work strategically.

A social enterprise is defined as a business with specific social objectives that serve its primary purpose. Social enterprises seek to maximize profits while maximizing benefits to society and the environment, and the profits are principally used to fund social programs.

Blended finance lets investors choose different risk tolerances while all participating in the same project. Often used in real estate transactions, it is also proving to be an effective way to get capital to critical, but hard-to-fund projects.

A golden share is a special type of share that grants its holder veto power over changes to a company's charter, ensuring control over critical decisions. This share typically holds at least 51% of voting rights and is issued by both private firms and government entities.

A micro acquisition involves a larger company purchasing a smaller firm, typically characterized by its smaller scale compared to traditional M&A. These acquisitions are driven by various synergistic motives such as acquiring talent, gaining access to new technologies, etc.

The fixed asset turnover ratio measures how effectively a company uses its fixed assets, like property and equipment, to generate sales. It's calculated by dividing net sales by the average balance of fixed assets.

A C corporation (C corp) is a legal structure where the corporation and its owners (shareholders) are taxed separately, leading to double taxation on profits at both corporate and personal levels.

QV allows participants to allocate credits among choices according to their preferences, with votes calculated quadratically. This means that more passionate preferences are weighted higher, which can protect minority interests and balance power dynamics within communities.

Fractional ownership allows investors to purchase a share of an asset rather than the entire cost, making it accessible for those with limited capital or seeking diversification.

An ESOP that operates within a 401(k). Companies match employee contributions with stock rather than cash. KSOPs are considered defined-benefit plans, as companies that offer them can reduce the administrative expenses of operating separate ESOPs and 401(k) plans.

In an ESOP or EOT transaction, the external loan is between the company and the selling shareholder; also, between the company and a financial lender, such as a bank, in externally financed transactions. The external loan is often reloaned as an internal loan to the Trust.

A financial metric that represents the difference between a company’s current assets and its current liabilities. NWC is defined as accounts receivable plus inventory minus accounts payable and accrued liabilities. NWC is often included in the purchase price of a business.

An LP is a business structure involving at least one general partner with unlimited liability who manages the business and one or more limited partners who invest but have liability only up to their investment.

The many things that set EO companies apart from non-EO, driving better results for people, planet, and profit. This can include longer tenure/loyalty with customers, and employees, more wealth creation for employees, reduced carbon footprint, and more.

An investor who raises capital on a deal by deal basis.

An array of programs at governments, certifying agencies, and other entities that support selected businesses to benefit a disadvantaged group of people, including businesses owned by racial minorities, women, veterans, disabled individuals, those in a disadvantaged area, etc.

In an ESOP or EOT transaction, the internal loan will be between the Trustee, on behalf of the Trust, and the company, with a loan provided by a third party such as a bank (as an external loan). This is a "reloan," because the bank would not lend directly to the ESOP.

The inventory turnover ratio gauges a company's inventory management efficiency by showing how often it sells and replenishes inventory annually. It's calculated by dividing the cost of goods sold by the average inventory value, providing insights into operational efficiency.