Revenue sharing mode
Target investing in stores and enter into joint operating agreements to specify the investment amount, joint operating period and revenue sharing percentage.
In combination with the share and debt advantages, adapt to the stores' capital requirements, operating cash flow cycle, and various micro economic forms with the smallest revenue units and controllable cashier systems.
The investment amounts are flexible, and risks are shared. A term is agreed for revenue sharing, and exit once the term expires. The merchants enjoy higher returns.
Revenue sharing model:
Provide investees with non-diluted low-cost financing tools without mortgage based on historical operation data and expected future cash flow. RBF investors make capital contributions to the store owners in a lump sum, in hope of sharing turnover of the invested stores within a fixed term, and realize payback and return on the investment.
No mortgage but with contingent guarantee requirements
High requirement for due diligence and time-consuming
Businesses with high growth and much imaginary space
Equity dilution
Intervention with operations management
Probable dispatch of directors
No requirement for fixed return
Perpetual profit distribution
Acceptance of business risks
Contingent conditional exit mechanism
No mortgage but with contingent guarantee requirements
Lower requirements for due diligence and short period
Availability of true and complete store management data for opening new stores
No equity dilution
No intervention with operations management
No personnel dispatch
No requirement for fixed return
With agreed term for revenue sharing
Acceptance of business risks
Higher returns enjoyed by project owners
With requirements for principal guarantee and fixed return
Punctual principal repayment and interest payment; with fund pressure
Weakly correlated to corporate receivables or possibly with guarantee fees
Equity dilution
Intervention with operations management
Probable dispatch of directors
No requirement for fixed return
Perpetual profit distribution
Acceptance of business risks
Contingent conditional exit mechanism
+65 9074 4997
chensiyu@yingdiantone.com
3 FRASER STREET,#O4-23A, DUO TOWER, SINGAPORE 189352
Leave us a message
Contact information