Should I trust this angel investors proposal?

I've been courting investors for a $300,000 investment for 20% equity in my company. One investor wants to put in $150,000 as an equity investment, and another $150,000 as a debt investment. Is this a dangerous set-up? What are the pros and cons of this? The company is not yet profitable but has considerable growth and projected profits soon.

Well, that sounds OK to me, as long as your debt repayments arent going to financially overwhelm your company. I guess he only want 10% ownership, and wants to get the rest of his money back to invest elsewhere. Is he offering you a good rate? If he's really expensive, you might want to take a look at the Small Business Administration for a Government loan if you havent already.

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　　Business financing 　　Business Invest 　　Business Debt 　　Bond Investment 　　Angel Funds 　　Alternative Investment

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