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Q: What risk do investors take on when they invest or loan money to new businesses?
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What does capital for business do for middle market businesses?

Capital for business is a term used to refer to money needed to begin a company. This can be personal money, investors, or even a small loan.


Where do businesses get money from?

They get a small business loan.


How money is channeled from savers to borrowers to investors?

Money is channeled through financial institutions such as banks. A saver saving with a bank account seeks to keep the money in the bank as it earns him interest. A borrower in need of a loan applies for a loan at the bank and if he is eligible, gets the loan at an interest rate. The borrower may chose to use the funds to invest in a business venture and thus be becomes an investor.


Why are banks called financial institutions?

because they loan and invest money


What are the main sources of finance open to a new business developer?

The main source of finance open to a new business developer is to get a loan from a bank. They can also raise money from developing partnerships with other businesses and investors.


What type of financing is available to small family businesses?

Try a personal loan from the bank. Try a business loan from the bank. Also try recruiting investors. The more people that are aware of your venture the better. It will also add to your chances of getting investors.


What is the name given to someone who borrows money?

The lender loans money to the borrower.The borrower takes the loan out with the lender.The borrower is then in debt (owes money) to the lender and the lender is in credit with the borrower and will want the borrower to pay him/her back.


How do savingborrowing and investing help the economy?

Saving, borrowing, and investing help to keep money moving and active. When people save money in a bank, the money does not just sit there; banks loan out a portion of the money to other people. Those people buy goods and services and invest in businesses, like real estate, as well as pay the loan back with interest. This movement of money helps the economy.


What is it called whenbanks lend money to businesses?

I think you might be reffering to a loan.


Should you use your extra student loan money to invest in the stock market?

No, not now, not ever. Never, ever borrow money for an investment.


How do you create an interactive website like Moshi Monsters?

First, get training or a college degree in computer game design. Design your game - have a plan for what the game will be. Then have lots of money to buy the equipment and programming you need or get some investors to agree to loan you the money or invest in your game. Create a marketing plan to get players interested in your game.


What do banks do with some of the profits they make by loaning out the money in their customer saving accounts?

They invest the money in high interest money markets and various other accounts. They don't loan out their customer's savings accounts, they loan out the money they make off these accounts.