In business, there’re a lot of terms brandished around, particularly relating to finance. It’s a continuous learning curve and it’s crucial to learn as much as you can as a business owner. If you want to help your company to grow and expand, learning all you can about business finance language is going to help.
Here, you’ll discover some of the key business finance terms you need to know to take your business forward.
Multi assets typically relate to investment funds. Many businesses choose to invest in assets in order to both diversify their portfolio and increase their profits. With multi-assets, it basically means investing in numerous different types of assets at one time.
Investing in assets is always risky and there’s a lot that can go wrong when you do it. That’s why it’s typically a good idea to use the help of a company such as Wellington Management. Having a professional look after your milt-assets for you can reduce the risks and provide peace of mind.
Equity is another common financial term used in the business world. It can relate to two different things. Firstly, it can be referenced as a type of finance businesses can opt for instead of a loan. You raise the capital needed by selling shares in your business in stock form.
Most commonly however, equity refers to how much your business is worth minus any debts and liabilities you might have.
Following on from the above, liabilities means any debts your business has. It could be credit card debts, loans or any money you may owe to suppliers. Your business may have both current and long-term liabilities that it needs to account for. Long-term liabilities would be loan repayments, whereas current liabilities would be any immediate debts you owe (such as debts to suppliers).
You’ll often hear the term “bottom line” mentioned in business and it means the overall amount your business has lost or earned within a month. So, the total figure you’re left with at the end of the month, is your bottom line. It’s important to monitor your bottom line to see how well the business is performing, as well as to make crucial decisions if needed to improve it.
These are just some of the most common pieces of financial jargon you need to be aware of as a small business owner. The more you understand about common financial phrases, the easier you’ll find it to push the business forward and expand. It can also help to enlist the services of a financial consultant if needed, who will help you to navigate the world of business finance.