Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• REVENUE SHARING NOTES
  
  This is a new concept developed for small business financing. A revenue sharing note is structured as an unsecured note to pay back the principal over a period of months or years. Like other debt offerings, the revenue sharing note positions the investor as a creditor rather than as a shareholder. As an extra incentive, the revenue sharing note also features an agreement by the company to pay to the investor a percentage of gross sales of the company, for as long as the note is outstanding. This percentage is over and above the principal payments. These notes typically pay around 1% of gross sales.
  
  Back