Business angel investment

Business Angels are private, cash rich individuals who are willing to invest in businesses. They normally bring more than just money to a business. They are normally successful entrepreneurs who have a variety of skills to bring to a business.

The core advantage of business angels is that they operate in a hands on manner, they take an active role in ensuring that the business they have invested in is a success. Often they have skills which are missing from the business and are able to assist the business grow and develop.

Business angels do not do all of this for nothing, what they will require in return is a percentage of the business, typically anywhere between 20-50% depending on the degree of investment required. This is also an advantage as business angels do not receive repayments until the business is profitable and can afford to repay it, unlike with business loans.

Business angel investment can really help small businesses raise the necessary capital to expand and plug any skills shortages that may be present without the cost of employing new staff.

 

Businesslending-4-you flavour image