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
