Is your business 'investment-ready'?
If your business has been operating for some time, potential investors will be interested in your past activities so that they know exactly what sort of business they will be investing in. It's a good idea to clear old debts or liabilities before you seek investment. Investors will also want to know about your business' intellectual property, especially if anyone outside the business has a potential claim to it. This may be the case if you've developed new products or service
Differences between private equity finance and bank loans
Banks have a legal right to charge interest on a loan, and to demand repayment of the loan by a specific date. This is the case whether or not your business succeeds once you have taken out a loan. In order to make sure that they get their money back, banks usually require you to secure your loan against business or personal assets - such as your home - which could be extremely risky if your business does not succeed. However, private equity investors do not have these legal
