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BUSINESS FINANCING GLOSSARY

Burn Rate

How fast a business spends its cash reserves each month. Paired with cash on hand, it tells you your runway.

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Related terms

Business Plan→A document outlining your model, market, financials, and projections. Often required for startup and SBA financing.Runway→How many months a business can operate on its current cash at its current burn rate before it runs out. Key for startups raising or borrowing.Startup Capital→Financing for new businesses underwritten on the founder’s credit, plan, and trajectory rather than years of revenue — including non-dilutive debt options.

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