revenue royalty certificates
Revenue-Royalty Certificates Increase in Popularity
The practical application of revenue royalty certificates continues to expand.
Recently a small website needed to hire additional programers to work on an important new project that would dramatically improve it. The only obstacle in the way was a lack of cash to pay the hew hires. The founder looked at the traditional sources of capital for such projects but none were applicable. Since the business wasn’t profitable and as with most online ventures lacked collateral, banks wouldn’t touch it. Angel investors were also out of the picture because they would have wanted too much equity.
So what was the solution?
The Internet is Discovering Revenue-based Financing
Today’s Business Insider has a brief article on revenue-based funding. Unfortunately the title is very misleading:
When should the payments on a Revenue Royalty Certificate begin?
Since I get at least one email a week about this I will explain how the decision is made.