Often the return rate will be five to ten times the original investments over a time span of five to ten years. The benefits are that, you do not need to deal with multiple institutions or issues for your investments.
The angels will simply analyze your proposal and be able to lend you money. Since they plan for a higher rate of return, they allow you take long times to settle. You can go from five to twenty years to settle the original sum. If the business is well planned, reliable and really profitable, then the borrower should be able to return the money even with a higher returning rate.
An example may be a newly establishing tooth paste company. The owner will need a sum of money to open up the factory, marketing and other costs. If they are sure about the demand and know that the business will keep on running once established, then they can apply for an angel investment to fund them. An angel investment is more likely to fund for this type of company, since the company can keep on running and will be able to pay in longer terms, which is good for the lenders as they will receive good returning rate.
Writing a well designed proposal to angel investors
One of the ways of convincing angel investors to give you the funds is by writing a well designed proposal. Especially if you are a new developer, you may find it a challenge. In this case, you may seek for assistance from other eligible persons. With proper research and networking, you will be able to identify people with the right track record and expertise in this area. The process requires patience because it might take time for you to find these people.