The global recession has hit the business community far and deep, and it has resulted in the status quo of previous easy acquisitions, low interest rates, and low equity lending a luxury far from the past.
Now, the average business owner has never been this difficult to apply for a loan and the eligibility threshold for a business loan has been significantly raised. You can easily get the best receivables management and debt collection solutions.
Even those who do succeed in getting a loan will find that this is more than just a hollow win. The reason is that commercial lenders charge exorbitant rates for their services.
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Angel investors are one of the most well-known types of corporate financiers, and the reason for this is that they regularly ask for shares in the company. This means that ultimately angel investors are not only involved in business profits but also in controlling the business.
If you are a business owner and you hope that angel investors will act as your own guardian angel and provide you with valuable insights into running and maintaining a business: think again.
In short, angel investors may be involved in the deal, but it is nothing but criticism and skepticism about the policy decisions you are trying to implement. Will you be able to withstand the pressure of such tough and difficult controls?
Bank loans are slightly better and the reason is that their value and scope are very limited. Banks can impose requirements regarding the right to borrow, e.g. the requirement to have a certain number of shares or capital reserves on hand.