A small business can't grow without proper funding. Funding can come from many sources – friends, family, banks, crowdfunding sites – but it's not always easy to find the right kind of funding from the right lender. Private funding sources are, essentially, non-bank lending sources. That can be family members, angel investors, venture capitalists or other private lending institutions.
Depending on the type of investor, you could get more than just funding.
"Private funding provides small business owners with more than just capital to get their venture moving," "The mentorship that is involved with private loans can make the difference in creating a successful company."
This type of mentorship is especially present when working with angel investors or venture capitalists. There are some clear advantages and disadvantages to working with private lenders. While you may have access to quicker capital, your interest rate may be higher, and you may have a demanding payment plan. Regardless, private funding sources serve to help small businesses that may not qualify for a bank loan get up and running.
"Obtaining sufficient capital could literally be the factor that makes or breaks a business's ability to grow," "Without private funding, many of those businesses could struggle to get off the ground or keep their doors open."
