Financing A Business
Personal savings are the main source of funds for starting a business, and
an entrepreneur must have some personal assets in the business. Lenders/and or
investors want to see that the owner has a fair amount of his own money in the
business before they are willing to invest. Friends and relatives are another
source of new financing, however, they may feel that they have the right to offer
suggestions, so it may be necessary to put this agreement in writing. Finally,
other individual investors, known as angel investors are a source of equity financing.
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