Benefits of Royalty Based Finance

Home / Benefits of Royalty Based Finance

Flexible Monthly Payments:flexible payments

Monthly payments rise and fall with revenue.  Unlike traditional debt, the payment plan is flexible and adapts to your business model. Cash flow friendly RBF is aligned with your top-line revenue targets. You are not penalized for slow months or seasonal circumstances.

No Restrictive Financial Covenants:

Unlike debt, there are no restrictive financial covenants, inflexible monthly payments, rigid terms, default provisions, or hard collateral.  No need for joint creditors; compliments pre-existing debt agreements

Retain Ownership:

You are able to raise growth capital and keep 100% of your equity.  No pre-money valuation required.  There is no risk of dilution or requirement for warrants.  Benefit from all the value you produce.

Retain Control of Your Company:

No board seats or governance requirements that could limit your control of the business.  Use the capital to run the business as you see fit.

No Personal Guarantee:

Protect your personal wealth.  Your personal and business interests are kept separate.

No Exit Strategy Required:

Mutual success is based upon revenue growth.  Does not require a liquidity event for success