There are pros and cons to angel investing. Here are a few of the benefits of teaming up with an angel investor, depending on your business needs.

Less risk

Starting a new business is inherently risky but partnering with an angel investor helps mitigate some of that risk. For one thing, angels generally come with some entrepreneurial experience, and, given that their own money is on the line, they’re likely to be more personally invested and driven to help you succeed, according to The Entrepreneur.

No traditional loans to pay back

Business loans typically come with interest rates and due dates. But an angel investor usually makes an investment in exchange for a stake in the company, according to The Hartford Not only does this mean there is no loan to be paid back, but it also ties the success of the company to the success of the angel’s investment.

Although a business loan might be a more common way to obtain funding, it typically comes with interest rates and due dates that don’t change based on the success or failure of your business. But when a business receives an angel investment, things work differently.