How to avoid dangerous investors and possible embezzlement

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Article Written by : Merchant Account Central
Although there are many good quality investors that will help grow your business, there are also dangerous investors who will cause problems and sometimes bring your businesses to bankruptcy. Here are some warning signs that will give you an indication of which investors to avoid.

Greedy – Investors who are not concerned about your team and are only interested in making money, are not sound investors. Although a main investor’s goal is to make a profit when it is the only thing they care about it can be detrimental to your team and their productivity.

Superman – If your investor speaks more about their credentials and accomplishments and less about how much he is willing to invest; he is not worth your time. Your investor’s investment should speak volumes as this is how much he thinks your business is worth. Most often these investors will hesitate to write their checks and often never invest the entire amount.

Doesn’t know your industry – Your investor should have experience in the industry he intends to invest. Capital from an investor shows that he understands your business’s needs and will be able to stir the business in the right direction.

Paranoid – If your investor in paranoid and constantly need reassurance about their investment, this means that they are unsure about your business and more concerned about the money they have put in.