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Ep 33: Royalty Financing: A Compelling Alternative to Debt and Equity Financing - Neil Johnson [CEO Duke Royalty]

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Royalty Financing for Business Acquisitions

Think of it like a corporate mortgage. Just like your house, you take a lump sum of capital by a house and what you're doing is you're amortizing that loan over a long period of time. And then from your cash flow, i.e. your salary, you pay your mortgage and the bank, you have one payment to make every month and it kind of never changes. So that's what we've done for debt financing for small business owners, small of the mid-cap SME businesses. We have also some characteristics like equity. That is in royalties, if you think of music royalties or drug royalties, mining royalties. But it is, it's a percentage

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