Capitalists are individuals (or groups of individuals) who not only have money of their own to invest, but who may -- and very often do -- require more money to exploit the enterprises in which they are engaged. Money loaned to such individuals, after being assured of their ability and integrity to manage it wisely, is as much an advantage to the lender as it is to the users.
The lender's profit is assured if the enterprise does not fail. As a result, the added capital he provides not only protects against such failure, but it may also enable the users to succeed beyond any expectations they could have if forced to carry on the work with only their own resources. One such enterprise is the purchase of land able to be developed -- upon which a house or other structure can be built and then either sold or rented for profit. Another is a manufacturing enterprise, where the users do not have enough money on their own to place the venture on a paying basis. In this case, they rely on other investors, whose contributions they have hopefully managed successfully in the past, to undertake the project.
Capitalists may also operate by establishing a fund from which, on good security, other businessmen in the community may obtain loans. The individuals can obtain a higher interest on the money lent than the interest they pay out on the money used for the fund.
