Keith Gilabert, "Bank loans vs. Private Equity Investors."
by keithgilabert, Window Shopper
- Created: May 17, 2012, 10:03 am
A bank will temporarily provide you with money to operate your business. An equity investor actually buys a piece of your business. For example Mark Zuckerberg, Founder of Facebook owns only 28% -- Down from 90% stake he owned when he started the company. If you have a proven business model such as a successful franchise I would shop around for a bank loan. If it is a unique business proposal then you will have to take on equity investors. For better or worse, they become your co-owners and share in the fortunes and misfortunes of your business. Good Luck! Keith Gilabert
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