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Revenue-Based Financing

Also known as royalty-based financing, is a method of raising capital for a business. In this agreement, investors provide capital to a company in exchange for a percentage of the company's ongoing gross revenues. The investors receive a percentage of the business's monthly revenue on an ongoing basis. The payments increase and decrease based on the business's revenues.
Revenue-based financing can be less expensive than other options. Also, those who provide revenue-based financing are invested in the success of the company because the amount of the monthly payments they receive increases as the company succeeds

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