Suitable for copyrights, licence, trademarks, patents in industries such as biotech, pharmaceuticals and software which have insufficient collateral for traditional bank loans and can see missed growth opportunities from lack of capital.
Loan is collateralized by future royalty payments from gross revenue and an agreed interest rate.

Benefits

No ownership dilution
Non recourse
Long term, Fixed rate financing
Interest is deductible from gross profits (pre tax dollars)
Defined payment period or value
Lending decision based on gross revenue streams
No exit strategy requirements or onerous VC negotiations


Criteria

Patents in place
Licensing agreements in place or under negotiation
Minimum 3 years certified accounts and business plan
Loan to be used for rapid business expansion
Gross margin > 55%

Loan Terms

$3MM to $10MM
Terms libor + 8% plus 0.1% to 1.5% gross revenue royalty
Time 90 - 120 days

If you would like to explore how our Royalty Based Finance - IP Program may be of value to your company, please give us a call at 818-591-0753 USA (West Coast) or 646 358 3469 USA (East Coast) or +353 65 684 5862 or contact us

(Program descriptions, terms, benefits and characteristics are subject to market change)