A hunk of cash flow. Royalty financing helps companies preserve their equity. Plus, the monthly or quarterly re turn that it provides is attractive to potential in vest ors. Angels are everywhere, and dealmakers are trying to recycle their wealth by investing in the next generation of emerging companies. With a newly streamlined application and a modest fee, entrepreneurs have nothing to lose by trying this route.
Private investors recoil at committing large sums of money.
Bridge the needs of the two by having a private investor guarantee a loan. This is the same concept that drives the SBA's popular loan guarantee program. People who like a product or service are more likely to be attracted to it as an investment. A company may want to explore its strong ties to its customers, community, or vendors. Copyright 1996-2001 Horizons Unlimited Group .