Business capital investors can be private individuals, non-private firms, banks who may be equity partner in business venture. That equity may be a share of the company or IPO. These private investors are successful businessman who are ‘Angel Investors’ having plenty of business experience and good contacts in high society. Some of them can be CEO of some successful company. The non private investors are Small Business Investment Companies (SBIC’s) and Venture capitalist (VC). As compared to Venture capitalist Angel investors are more patient and lenient, but they demand very high return of their investment.
There is advantage in taking loan from private investors as they take very less time to sanction the loan. There are no cumbersome procedures. Advantages of non private investors are that they have large source of fund and it is more secured. Particularly SBIC are answerable to SBA, hence there is some guarantee of funds.
Having said this all businessman should understand that to get loan from various lenders are not easy task. Credit worthiness is the main criteria where most of applicant fails. But in spite of that there are many lenders are available who are eager to invest their money. In order to get their details you must take help from various professional Finance people, who have ready made information about many lenders.
