Bdcs Are A Powerful Way To Strengthen The Economy

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BDC's are a powerful way to strengthen the economy by providing small to medium sized businesses capital, where all too often banks tend to overlook them. This neglect from banks has a trickle downside effect, preventing businesses from developing new markets and causing new ideas to fall short of their promise.

Great opportunities abound when companies receive much needed financial investment, allowing innovation to take hold and enhance society as we currently know it. With this concept in mind, I wish to share with you some of my thoughts on how effective your investment in BDC's can give rise and ultimately benefit our economy today.

Here are five key ways I believe the economy becomes more palpable, when you invest in business development companies.

5 Ways Your BDC …show more content…

There are a minimum of 124 million Americans in the workforce employed by companies outside the S&P 500. Therefore, it is important to understand that small to medium sized businesses are the dominant engines at work for the economy, giving people necessary jobs across the country. To have a thriving economy, businesses need to expand and they need cash to do so. With your BDC investment, more companies will gain access to that cash to expand their company and hire more qualified workers, resulting in sound economics.

#4 – Lower Default Rates
One of the great things about BDC's is the value of support and coaching from the same people who make the initial investment. It is known that BDC investors are similar in vein to venture capitalists by closely working with their portfolio companies. This means lower default rates exist because of the relationship between the investor and company. Such increased business support adds tremendous value in giving small to medium sized businesses a greater chance of success and in turn providing a much more confident economy.

#5 – Company