Royalty Financing

Royalty financing is a funding method where investors provide capital to a business in exchange for a percentage of the company's revenue over time. Unlike traditional loans, there are no fixed monthly payments; instead, the investor receives a share of sales until a pre-agreed amount is repaid. This arrangement allows businesses to access funds without giving up equity or control, while investors benefit from the potential for ongoing returns tied to the company's success. It's commonly used in sectors like entertainment, mining, and startups, where cash flow can be variable.