The Banking System is Being Changed by Angels
by James Scott
The banking system and all it’s baggage is slowly transforming into one global financial system as opposed to the entrepreneurial micro managed system that helped raise the international economy out of the ashes of world war two. Along with the rapid globalization of the banking system comes the problems that occur when small and medium size businesses try to raise funds. The process of raising capital for the small business is a completely different ball game than it was just 2 years ago. Institutional lenders turn a blind eye to mom and pop shops seeking seed capital, medium size corporations seeking expansion capital and large entities seeking survival capital in these difficult economic times. The question being asked now is, “who will come to the rescue of companies seeking a solution to their capital needs?” The answer to that question is, “Angels”. Not angels that float up in the clouds strumming harps and sporting halos, but angel investors that are heavily capitalizing off of the gargantuan void in the lending and equity investment market whose remnants have been crushed and scattered after the new millennia’s international banking title wave. Individual angel investors are clawing at all directions to smash and grab at the companies, small and large, that hold the most promise for capitalization in these strange times. The buy and hold mentality of micro ticket and midsize investors is still quite relevant at this time. For companies seeking capital the best places to ignore are banks and hedge funds and the best places to look are angel investors, private investors, hard money lenders and other private equity funds that look at the basics: a solid executive staff, a scalable business model, contracts on the books that need funding in order to fulfill and international growth ability and intention. Websites are coming online that focus to entrepreneurs that are seeking alternative sources of funding. Groups of international corporate consultants are beginning to offer business owners a more evolved form of investor database that focuses solely on alternative finance. Cast aside the cliché and archaic search for bank loans and lines of credit to fund your corporate ambitions and seek out the database ‘type’ companies online that provide angel and private investor contacts for a modest membership fee, this is where you’ll find funding to start and grow your company.
