Looking for a way to finance your small business, but having trouble finding a lender that will work with you? Do you need cash to start or grow your business, but can’t afford to take the time to put everything together for a typical bank loan? Your business can still open and grow with a small business private investor loan. This is a great option and it may work for you. Here’s how it works and what to expect.
First you will need to find someone who is willing to invest the amount of money you need in you. These people are often called angel investors, but they can also be private individuals with a lot of money. Lawyers, doctors, athletes, and other business owners are often where you’ll find investors who want to find businesses to lend money to. You may have to give up some of your property, but this is normal and will be a small percentage.
You can also find private investors in the form of angel investors, which are groups of people who use their money together to invest in businesses. This reduces the risk for them, but it also makes it more difficult for you because they require more than an individual investor might. You will need a business plan and a presentation to angel investors and it could take a few months to get the money you need from them.
Another way to get money other than a small business private investor loan is to sell your company’s stock. This is a great way to raise some money and you can set the price and terms. If you want, you can even work on a buyout clause that allows you to buy back the company’s shares after so long for a percentage of what it’s worth or a fixed amount. All of this should be done by a lawyer so you don’t miss out on any of the contract issues.
