Business is not possible without investments. It may be high or low depending on the type of the enterprise. An investor is an individual or an organization, who deposits money in a business, trade or commerce with the intention of reaping maximum profit. The investors are classified into many types. Let us comprehend one by one.
Bank: The most reliable financial source till now in the global economic market is a Bank. A lot of smallscale enterprises fully rely on bank loans for starting up their business. One who is seeking loan should be able o prove their financial responsibility to the bank. Documents like project proposal, implementation plan, expected profitability should be submitted and get verified by the bank authorities for loan approval. Afterward, loan due along with interest should be paid to the bank every month.
Angel Investors: They are high profile billionaires who invest a lot of money in an enterprise and buys stock in return.
One to one lending: This is also known as peer to peer lending. Those traders, who don’t want to go through conventional banking procedures to obtain loan approach financially sound lenders for further investments. The lenders take a note of the business progress and sanction debt for their desired interest rate.
Virtual investor: These online investors are studious and active and they monitor stocks all the time and make investments in terms of money or cryptos at the right time. The online trading software like QProfit System is there to record the market in real time. It is a fully automated robot, highly reliable and profitable.
Personal investor: Our family or friends may show interest in our business or would like to help to expand the business or to help to start a new one. They would be willing to lend money expecting monetary benefits in return. The right thing to do is to sign a partnership agreement to avoid any chaos in the future.
Venture capitalists: Once the business got established well, one may seek for virtual capitalists to fatten the enterprise. They are financial giants, millionaires who can invest as much as possible expecting boat load of return. They should be offered equity capital, which means the potential ownership of the company.
Bottom line: Business prevails only when liquidity is high. Cash flow should be there around the year. So, the role of external investors in establishing an enterprise in today’s world is crucial and undeniable.