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Revenue-based Financing
Revenue-based financing (also known as royalty financing or royalty-based financing) is a type of financial capital provided to growing businesses in which investors inject capital (sometimes called an ''advance'') into a business in return for a fixed percentage of ongoing gross revenues (called ''royalties''), with payment increases and decreases based on business revenues, typically measured as monthly revenue. It is a non-dilutive form of financing, which means that the company's management retains complete independence and control, as there is no equity investment or impact on the company's shareholding. Usually, the returns to the investor continue until the initial capital amount, plus a multiple (also known as a cap) is repaid. Generally, RBF investors expect the loan to be repaid within 1 to 5 years of the initial investment depending on the model and the funded companies. Overview RBF is often described as sitting between a bank loan, typically requiring collateral or s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Capital
Financial capital (also simply known as capital or equity in finance, accounting and economics) is any Economic resources, economic resource measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services to the sector of the economy upon which their operation is based (e.g. retail, corporate, investment banking). In other words, financial capital is internal retained earnings generated by the entity or funds provided by lenders (and Investor, investors) to businesses in order to purchase real capital equipment or services for producing new Goods and services, goods or services. In contrast, real capital comprises physical goods that assist in the production of other goods and services (e.g. shovels for gravediggers, sewing machines for tailors, or machinery and tooling for factories). IFRS concepts of capital maintenance ''Financial capital'' generally refers to saved-up financial Wealth (economics), we ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alternative Assets
An alternative investment, also known as an alternative asset or alternative investment fund (AIF), is an investment in any asset class excluding capital stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as precious metals, collectibles ( art, wine, antiques, vintage cars, coins, watches, musical instruments, or stamps) and some financial assets such as real estate, commodities, private equity, distressed securities, hedge funds, exchange funds, carbon credits, venture capital, film production, financial derivatives, cryptocurrencies, non-fungible tokens, and Tax Receivable Agreements. Investments in real estate, forestry and shipping are also often termed "alternative" despite the ancient use of such real assets to enhance and preserve wealth. Alternative investments are to be contrasted with traditional investments. Research As the definition of alternative investments is broad, data and research vary widely across the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Royalty Payment
A royalty payment is a payment made by one party to another that owns a particular asset, for the right to ongoing use of that asset. Royalties are typically agreed upon as a percentage of gross or net revenues derived from the use of an asset or a fixed price per unit sold of an item of such, but there are also other modes and metrics of compensation.Guidelines for Evaluation of Transfer of Technology Agreements, United Nations, New York, 1979 A royalty interest is the right to collect a stream of future royalty payments. A license agreement defines the terms under which a resource or property are licensed by one party ( party means the periphery behind it) to another, either without restriction or subject to a limitation on term, business or geographic territory, type of product, etc. License agreements can be regulated, particularly where a government is the resource owner, or they can be private contracts that follow a general structure. However, certain types of franchise ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Income Share Agreement
An income share agreement (or ISA) is a financial structure in which an individual or organization provides something of value (often a fixed amount of money) to a recipient who, in exchange, agrees to pay back a percentage of their income for a fixed number of years. ISAs have gained prominence as an alternative to the traditional student loan system in American higher education, and a number of private companies now offer ISAs for a variety of purposes, including as a funding source for college tuition. ISAs are often considered to be less financially risky to a borrower than a traditional private student loan. In the UK this type of agreement received final FCA (UK financial regulator) approval, under a unique regulatory framework. So far StepEx is the only firm to operate as a regulated ISA provider, underwriting the credit with funds from large UK financial institutions. Characteristics Income share agreements are characterized by a percentage share of future income for som ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Commercial Loan
In finance, a loan is the tender of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay interest for the use of the money. The document evidencing the debt (e.g., a promissory note) will normally specify, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and the date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower. The interest provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice, any material object might be lent. Acting as a provider of loans is one of the main activities of financial institutions such as banks and credit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost Of Capital
In economics and accounting, the cost of capital is the cost of a company's funds (both debt and equity), or from an investor's point of view is "the required rate of return on a portfolio company's existing securities". It is used to evaluate new projects of a company. It is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new project has to meet. Basic concept For an investment to be worthwhile, the expected return on capital has to be higher than the cost of capital. Given a number of competing investment opportunities, investors are expected to put their capital to work in order to maximize the return. In other words, the cost of capital is the rate of return that capital could be expected to earn in the best alternative investment of equivalent risk; this is the opportunity cost of capital. If a project is of similar risk to a company's average business activities it is reasonable to use the company's average co ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Gross Margin
Gross margin, or gross profit margin, is the difference between revenue and cost of goods sold (COGS), divided by revenue. Gross margin is expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold (e.g., production or acquisition costs, not including indirect fixed costs like office expenses, rent, or administrative costs), then divided by the same selling price. "Gross margin" is often used interchangeably with "gross profit", however, the terms are different: "gross ''profit''" is technically an absolute monetary amount, and "gross ''margin''" is technically a percentage or ratio. Gross margin is a kind of profit margin, specifically a form of profit divided by net revenue, e.g., gross (profit) margin, operating (profit) margin, net (profit) margin, etc. Purpose The purpose of calculating margins is "to determine the value of incremental sales, and to guide pricing and promotion decision."Farris, Paul W.; Neil T. Be ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Revenue
In accounting, revenue is the total amount of income generated by the sale of product (business), goods and services related to the primary operations of a business. Commercial revenue may also be referred to as sales or as turnover. Some company, companies receive revenue from interest, royalties, or other fees. This definition is based on International Accounting Standard, IAS 18. "Revenue" may refer to income in general, or it may refer to the amount, in a monetary unit, earned during a period of time, as in "Last year, company X had revenue of $42 million". Profit (accounting), Profits or net income generally imply total revenue minus total expenses in a given period. In accountancy, accounting, revenue is a subsection of the equity section of the balance statement, since it increases equity. It is often referred to as the "top line" due to its position at the very top of the income statement. This is to be contrasted with the "bottom line" which denotes net income (gross reve ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mountain States
The Mountain states (also known as the Mountain West or the Interior West) form one of the nine geographic divisions of the United States that are officially recognized by the United States Census Bureau. It is a subregion of the Western United States. The Mountain states are considered to include: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming. The words "Mountain states" generally refer to the U.S. States which encompass the U.S. Rocky Mountains. These are oriented north-south through portions of the states of Montana, Idaho, Wyoming, Colorado, Utah, and New Mexico. Arizona and Nevada, as well as other parts of Utah and New Mexico, have other smaller mountain ranges and scattered mountains located in them as well. Sometimes, the Trans-Pecos area of West Texas is considered part of the region. The land area of the eight states together is some . It is the fastest-growing region in the United States, with Utah, Idaho, Nevada, Colorado, and Arizona ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Internal Rate Of Return
Internal rate of return (IRR) is a method of calculating an investment's rate of return. The term ''internal'' refers to the fact that the calculation excludes external factors, such as the risk-free rate, inflation, the cost of capital, or financial risk. The method may be applied either ex-post or ex-ante. Applied ex-ante, the IRR is an estimate of a future annual rate of return. Applied ex-post, it measures the actual achieved investment return of a historical investment. It is also called the discounted cash flow rate of return (DCFROR)Project Economics and Decision Analysis, Volume I: Deterministic Models, M.A.Main, Page 269 or yield rate. Definition (IRR) The IRR of an investment or project is the "annualized effective compounded return rate" or rate of return that sets the net present value (NPV) of all cash flows (both positive and negative) from the investment equal to zero. Equivalently, it is the interest rate at which the net present value of the future cash fl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Wayflyer
Wayflyer is an Irish fintech company that provides purpose-built financing solutions to consumer brands worldwide. Founded in 2019 in Dublin, Ireland, the company's proprietary technology assesses a brand's growth potential to deliver tailored financing options in minutes rather than months. As of March 2025, Wayflyer has deployed over $5 billion in capital to more than 5,000 brands globally and has been backed by leading investors including QED, Left Lane Capital, and DST Global. History Wayflyer was founded in September 2019 by Aidan Corbett and Jack Pierse to address the challenge of access to working capital for growing consumer brands. The company deployed its first financing in April 2020 to Ambr Eyewear and launched in the United States in June 2020, which quickly became its largest market. In May 2021, Wayflyer raised a Series A funding round from investors who have also backed companies like Stripe, Brex, and Revolut. In February 2022, the company secured a $150 million S ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
