Sunday, April 5, 2009

Small Business Finance: Venture Capitalists & Banks

Looking for money to start or support your small business?

Avoid one of the biggest, and most common, mistakes -- don't ask the right people for the wrong kind of financing.

There are several categories of small-business funders, including small-scale venture capitalists, "angels," banks, factors, and "irrational investors." It is very important to present potential funders the right kind of proposals. Don't make a pitch for venture capital from a bank, for example, and don't ask a factor for the kind of generous terms that an irrational investor will offer.

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