in the new economy, it can be very difficult or impossible for small business owners or business owners find the capital to support the development of new ideas. Historically, small businesses and entrepreneurs looking for capital, "Angel" investors and lending institutions, and these options are available to all, even well established businesses. Income based finance models, sometimes called fee based funding model (RBF), a financing plan that was introduced more than 50 years and is gaining popularity today. RBF model provides unique benefits for both small businesses and investors.
is not dilutive RBF model system in which a small business owner does not lose any ownership in the company, this factor tends to be the most important and desirable feature of RBF funding for small business owners. In addition, investors will pay is limited to a specific amount to be paid from the proceeds the company achieves a certain period of time. Entrepreneurs benefit by receiving investment dollars to build their business without any loss of property and investors benefit by receiving payments as income from foreign poduzeća.Investitor bought the rights to revenue from small businesses, but they have not purchased any property poslovanja.Uvjeti RBF models are usually are negotiated in order to allow time for revenues collected prior to the disbursement should be, and usually has a limit of time, and limit the payment that is included in the negotiated terms.
This model is now used by many investment firms across the country, including local and state government agencies. Significantly, not all small businesses and investors will benefit from using this model. Investors who agree with the terms of RBF have to accept the 'cap' earning potential investment. Companies with low profit margins and limited flexibility on pricing should carefully negotiate the terms of any plan RBF funding to make sure their income can support regular benefits and pay investors.
RBF model can provide a stream of revenue for any business and can provide a mechanism for funding and a well established business institutions and innovations, equally.