5 Unusual Ways You Can Borrow Money for Your Business
3. Hedge-Fund Lenders
According to business week magazine, hedge- founders are called as “the new corporate ATMs". The reason behind this is because; these hedge- funders lend money to businesses that are of high risk like asset- or technology-concept backed companies.
The amount of loan will depend purely on the pitch the borrower makes. The decision to lend the loan to borrower is made after some due formalities, but much better and is flexible than that of the conventional lenders.
The benefit of getting a hedge fund loan is that, even they have quick accessibility to the money like factors, but it has one major drawback, that is borrowing high amount and paying penalties till you repay the loan. Some hedge funders purposely fund for risky businesses to exploit the internal information, which would benefit them on their other trading.
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