Revenue Royalty Certificate Financing
A fairly old, tried and true financing method for both startups and small businesses needing growth capital is generically referred to as revenue-based financing. It’s also sometimes referred to as revenue participation or revenue sharing funding. The actual document used is typically called a Revenue Royalty Certificate (RRC) or Revenue Participation Agreement or some combination of the two.
I first learned about revenue based financing from one of the greats among angel investors, Arthur Lipper, who had a particular fondness for the instrument. This was back in 1985. Since then I have used it myself and seen others use it as well to both launch startups and provide growth capital to existing small businesses. Continue reading
There’s going to be a blog on the topic of “how to buy a business” as well. It’s coming shortly. My plan is to cover the basics on the topic. In the meantime, you can find out more about the how to buy a business course I offer by clicking the link.