personal loans and angel investors, business and finance homework help

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Please respond to this post in 5 sentences or more agreeing, disagreeing, or adding your opinion to.

I would most likely start by using personal loans and angel investors to start a business. Personal loans offer interest rate stability over a fixed term with a minimum payment over the life of the loan. The interest is usually less than credit cards and are usually easier to budget. However, personal loans can be difficult to be approved for when it comes to starting a business. You must be prepared to have a great business plan to present to the bank as well as enough assets to cover part of the loan before they will even consider you for a personal loan. Getting a personal loan for starting your business can be difficult and time consuming, as well as morale busting but could be a great option if you have a great startup. The second type I would use would be angel investors. Angel investors can provide the capital needed as well as advice that may be needed. Angel investors are typically successful business owners who have extra capital on hand to lend to who they wish. They are typically personally invested in the business due to the fact that they want to get as much out of their investment as possible and are more interested in the business succeeding. However, angel investors set their bar much higher and have high expectations. It could be difficult to meet their needs and may end up pushed out of the business altogether depending on the contract made. Usually have strings attached when involving an angel investor, they are in it for the money as well and can be smarter than you in business and contracts. It is always important to understand the risks and benefits of borrowing money and getting advice needed; however, the risks could be worth owning a multi-million dollar company as well.$1

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