The Bao Lyon Group, LLCInvestors & Funding
Investors: Concept and types
Banks as Investors
- A complete, detailed description of the business
- A description of the business core products and/or services.
- Financial Projections.
- Management Projections.
- Planning for goal implementations.
Potential peer-to-peer loan investors will have access to your credit history. In some cases, lenders will ask you to take steps to raise your credit score before receiving loan approval. Once you've been approved, you'll negotiate an interest rate for the investment with the lender, who is often a private individual. It's important to understand the terms of the loan and avoid falling behind on payments.
Angel investors are also called informal investors, angel funders, private investors, seed investors or business angels. These are affluent individuals who inject capital for startups in exchange for ownership equity or convertible debt.
An estimated 268,100 active "angel" investors in the United States invest an estimated $20 Billion into 60,000 companies a year. Angel investors are usually wealthy entrepreneurs who want to leverage their wealth by investing in projects they are passionate about, especially startups that may have difficulty accessing more traditional forms of financing. Many angel investors are successful entrepreneurs themselves, as well as corporate leaders and business professionals.
In some cases, these "angels" make a high-risk investment in hopes of receiving a significant return if the company is bought out by a larger corporation or is publicly traded on the stock market. This type of angel investor is usually most active when the economy is strong or stable.
The terms of a loan from an angel investor are detailed in a promissory note. With angel groups, angel investors can pool their capital to make more substantial investments. Contact us for details and a tailored analysis of your situation and specific need.
This approach is best suited for funds to get a new company off the ground. However, loyalty and affinity for the business open personal investors up to potential long-term investments.
A contract should govern personal investments just like any other type of investment. This may prevent the risk inherent in mixing business with family. Sign a promissory note spelling out the terms of the loan as well as a separate agreement if a partnership is on the table. Contact us for details and a tailored analysis of your situation and specific need.