Tuesday, August 5, 2008

Angel Investors VS Banks

If you are reading this blog you are probably looking for investment for your business. As a business owner today there are numerous options for business funding. There are so many options that you can avail. However, the two most favorable options are banks and angel investors. Both these sources can provide you with substantial amount of monetary investments to get your dream business on the road to success. However, on closer scrutiny, you will find that angel investors can often outweigh banks when it comes to investing in a business. How? Let’s find out.

For starters, banks will demand a substantial interest rate over the amount that you take as a loan from them. This can balloon into an amount that may not be easy for you to bear, depending on how your business is faring. However, banks will take no interest in the condition of your business. They will simply want their money back on time, no matter how you pay it. An angel investor, in contrast, is effectively your partner in the business. His/ her profits will depend on how well the business is faring. So, if your business is not running too well, the investor will help you boost your profits, for his/ her own interest. Which bank can ever provide you with this kind of facility?

Secondly, banks are only concerned about whether you are paying the loan back on time. How you run the business is your headache. An angel investor, on the other hand, will try to boost your profits for his/ her own sake. The investor will channel his/ her own client base towards your business to boost its profits. Besides, the veteran investor will also act as a business mentor, teaching you various tips and tricks to make your business a success. Since when did banks start providing this kind of assistance?

So, as you see, angel investors are way over banks as investing authorities. So don’t worry. Log on to investorsnetwork.co.za now to find the perfect angel investor to turn your dreams of owning a business into a glorious reality.

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