The Costs Related to Raising Capital

Angel investors do not usually provide loans unless there is a substantial interest rate associated with this type of financing. There are many industries that are less risky and therefore more attractive to angel investors that allow them to provide equity capital to promising ventures. There are a number of strings attached to working with private funding sources that provide capital in both the form of debt or equity capital. Private investors may include hard money lenders that want to generate a high interest rate from property based loans.