Revenue Based Financing Agreement Template

The fund s general conditions for agricultural development financing dated 29 april 2009 as may be amended from time to time the general conditions are annexed to this agreement and all provisions thereof shall apply to this agreement.

Revenue based financing agreement template. The document has an illustrated case study to have a clear view on the calculations. Download a sample revenue based financing term sheet document for your reference. There are different forms of finance agreements made for different needs check out this credit agreement template to know better. What is revenue based financing.

Other names include revenue share financing royalty financing or a revenue loan. Sample revenue share agreement amount of financing. A revenue loan is a form of financing where a lender loans funds to a business and receives payments based on a percentage of the business ongoing gross or net revenues. 2 5 of borrower s gross revenues from all sources minus permittable offsets outlined below delivered to village capital in.

Revenue based financing sometimes known as royalty based financing was used by oil investors in the early 20th century to finance oil and natural gas exploration and later by the pharmaceutical industry hollywood and energy companies. This structure is common in financing oil and gas exploration and movies but. A blend of bank debt and venture capital revenue based financing rbf is a funding model whereby investors inject capital into a business in return for a percentage of its revenue. Revenue based financing rbf is non dilutive funding based on your business s recurring revenue.

Generally speaking these agreements should always be made in writing to ensure long lasting wholesome business relationships. These finance agreements are really the creation of a confidential business relationship. Investors began applying it to early stage companies in the 1980s. It is somewhere between equity and debt.

25 000 as part of a 50 000 total raise types of investment. For the purposes of this agreement the terms defined in the general conditions shall have. The loan is paid off when the lender receives a multiple of the amount of the loan e g. This is a form of revenue based financing.

Once the payments have totaled the funding amount plus an agreed upon multiple cap the repayment obligation has.