Royalty financing

Royalty financing – within the Corporate Law, this term refers to an investment made to a company for increase of marketing or for releasing new product on the market. In exchange, the investor receives a percentage of the future income of the company, without receiving actual shares of the company. It is effective when supporting small business trades and when the investor does not want to be associated officially with the ownership of the company.
The root of the term is the word “royalty” which literally means that a fee is granted to the owner of product.

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