Revenue vs Payment Chart
Cash Flow Friendly
Flexible monthly royalty payment is based upon revenue. If revenue increases, the payment increases and vice versa. No need to worry about making the payment if the company has slow months.
Flexible Monthly Payments
Monthly payments rise and fall with revenue. Unlike traditional debt, the payment plan is flexible and adapts to your business model.
Mutual Focus on Revenue Growth
Success for both the owner and investor is revenue growth – not the eventual sale of the company
Protect Personal Wealth
No personal guarantees required. No need to risk your personal wealth.
Retain Ownership & Control
Business owner does not sacrifice equity or give up control of the company. No board seat required.
Flexible Terms
No collateral, performance/personal guarantee, rigid terms/payments, default provisions etc.
Compatible with Debt & Equity Agreements
No need for joint creditors-compliments pre-existing debt agreements. Compatible with VC and debt financing – increase company valuation