how your bdc investment helps strengthen the economy

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How Your BDC InvestmentHelps Strengthen the Economy

Chris Oberbeck

Traditional options should not beforgotten, but investing in a businessdevelopment company (BDC) is now a

viable option for those seeking increasedreturns with manageable risk.

BDCs Help You HelpSmaller Businesses

Looking at the industry as a whole,BDCs can often be safer than banks

during a financial downturn.

Banks leverage assets at anywherebetween 8 to 10 times over, whereas

BDCs are limited to 2 times leverage.

Banks today have more equity as apercentage of assets than they have

had in over 20 years.

Since banks are less willing to investin a small to mid-sized companies,

BDCs provide an excellent opportunityfor investors.

Small to medium-sized businessesserve as the dominant engines for theeconomy by providing necessary jobs

across the country.

With BDC investment, morecompanies can gain access to funds,

expanding the company whilecreating more payroll flexibility to

hire more workers–if that aligns withthe investment plan between the

company and the BDC.

Invest Like aVenture Capitalist

Sort Of

BDCs allow for investors of any financialstature to participate in the market.

The increased investment support addsvalue to small and mid-size businesses,

as they are given greater chances ofsuccess. If that success comes to fruition,

the economy benefits as well.

BDC investment nurtures entrepreneurshipby helping growing companies enter

positive cash flow and providing managerialexpertise to those in need.

As demand increases in this sector, newopportunities will continue to open up.

These opportunities, if followedsuccessfully, will contribute to thegrowth of and strengthening of an

economy dependent on the success ofsmaller businesses.

As with any form of investment, thereare no shortcuts and it is always advised

to do your homework if you want to besuccessful.

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