Published on August 20th, 2019 | by Micheal Pando0
Angel investor alternative to loans and finance
Finding a trusted source such as a business advisor, Angel investor, or venture capitalist that wonât try to rip you off can be a bit of a challenge. There are times in most businesses when you may need some outside help. Business angels could in many cases also be classed as troubleshooters. They act as impartial observers and advisers because they will never be as emotionally tied to the business as you. Letting go at the right time is something many people in business find very hard.
Good business advisors can connect you to angel investors and venture capitalists. Itâs these individuals who use their own private wealth to invest in businesses that they think are going places. Often the sticking point is not money but rather better guidance thatâs needed. In a tough financial climate many business owners find it difficult to persuade banks to loan them more money.
However, itâs not just about lending money. Angels are more than that. They will have commercial contacts that you may not have access to or know about. Business angels are generally more open to taking a risk if they think the idea you have is viable, but may need some work in set up, or management, or other aspects.
Angel investors will often join together to make investments work better for all.
Business angel advisers are not beholden to banks, they can make their own decisions about whether the investment in your business is a good one or not.
They will often take shares in the business in return for providing equity finance. In this way, they become part of the business, sometimes for short periods only.
Angel investors do vary in approach, some will be more hands on than others, but this is always agreed with the existing management structure in advance of working together. Your own expertise and knowledge in running the business will be very important to them. Many businesses benefit from the hands on approach of someone experienced who can encourage them to view things from an objective viewpoint.
Having access to skills that you donât possess can be a very powerful driver for any business that wants to move to the next level and achieve commercial success. Allowing business angel investors to invest in your business can be both enjoyable and rewarding. Of course there will always be risks, as with all financial investments, but then some would say there are greater risks just by lending from a bank.
Because they have invested their own time and money, business angels have a good reason to help you succeed, banks donât.