Business capital investments are funds provided by various lenders or rich and affluent people who have plenty of extra money to invest in various businesses. There are many sources from private as well as non private companies who provide start-up capitals. Some businesses are funded by their friends and relatives and another private source known as Angel investors. These Angel investors have plenty of business experience and are having sufficient money to invest. Some of them are also Chief executive of some successful company.
Small Business Investment Company (SBIC) is another source who is essentially a non private source. With these investments the company starts and finally takes into a shape. When the business gets established, these companies repay their loan which is in the order of about 10 to 20 times higher than what they had take for some angel investors. Angel Investor – They are usually rich and affluent people of the society having lots of contacts and business experiences. They do not take much time to sanction their loan. Neither do they interfere in the business operation. They are ready to wait longer to get their return of investment. SBIC’s – These are owned by few investors aligned to various commercial Banks. There is a security as they are accountable with SBA.
