Startup Forums Discussions Venture and Angel Capital Investment How do funding / capital groups provide you with money?

How do funding / capital groups provide you with money?

How do funding / capital groups provide you with money?

 
LoveMoney
Junior Member
6
03-26-2025, 09:30 AM
#1
There are many ways a capital/investment group may provide you with funds.

First one being is that a capital group will work the loan application with lenders (institutional banks) and the group will act as a co-signer on your business loan but you being the primary person responsible to make timely payments. Such groups may charge you a one-time fee, monthly interest payments as commission, or collect a rebate from the lender directly for facilitating the deal.

Second one where organizations may use in-house funds collected from their clients, investments, or private companies. Usually, such investment groups have strict rules on where the funds will be invested.

Finally, you may come across the occasional niche (industry specific) investment group that in reality acts like your accountant in helping you qualify for industry specific government grants such as farming grants, electric/solar business grants, and so forth.
LoveMoney
03-26-2025, 09:30 AM #1

There are many ways a capital/investment group may provide you with funds.

First one being is that a capital group will work the loan application with lenders (institutional banks) and the group will act as a co-signer on your business loan but you being the primary person responsible to make timely payments. Such groups may charge you a one-time fee, monthly interest payments as commission, or collect a rebate from the lender directly for facilitating the deal.

Second one where organizations may use in-house funds collected from their clients, investments, or private companies. Usually, such investment groups have strict rules on where the funds will be invested.

Finally, you may come across the occasional niche (industry specific) investment group that in reality acts like your accountant in helping you qualify for industry specific government grants such as farming grants, electric/solar business grants, and so forth.