Venture lending

Hi! Venture lending is like when your parents give you money to start a lemonade stand. They know you want to make money, but they also know that starting a business can be expensive. So, they lend you some money to help you get everything you need to make your lemonade stand.

In the same way, venture lending is when someone gives money to a company that is just starting out or trying to grow quickly. The company wants to do new things and make more money, but they don't always have enough money to pay for everything they need. Venture lenders give them money to help them buy the things they need to grow, like new equipment or to hire more employees.

But, just like your parents want their money back from your lemonade stand profits, the venture lender also wants their money back from the business profits. They might also charge some extra money, called interest, for letting the company borrow their money.

Overall, venture lending helps businesses get the money they need to grow, but they have to pay it back with a little extra.