Royalty Based Investments: An Introduction
As most business owners know… you need money to make money. Acquiring capital through business funding is necessary for:
- Purchasing Inventory
- Meeting Payroll
- Order Fulfillment
- Other Commercial Expenses
…and that’s perfectly normal!
Every business needs capital investment every once in a while. The problem that some businesses can run into is when there are strings attached to the funding amount.
Working with investment companies that will loan to your business in return for a certain percentage of your business or in return for a personal guarantee or collateral.
Giving up ownership in your company in a form of these types of equity arrangements can be a deal breaker for most businesses. A few of the more understandable reasons these equity arrangements may not work are:
- Loss of control
- You may the kind of mentoring you’re expecting
- Equity Investment Companies don’t go away unless you buy them out
So what’s the alternative?
Let’s get started and review Yalber.
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Table of Contents
Yalber Royalty Based Investments: An Overview
Royalty based investments is a pioneering form of business financing where the business owner receives the necessary capital for your business expansion. Up and coming companies can grow their business and increase their value without the need of surrendering their equity or taking on a mountain of debt.
Basically, a royalty investment loan is given in return for a share of the company’s future revenue.
But it can be a little tricky…
Rather than purchasing an equity position in a company, the investor will lend the company a specific funding amount (or deal amount), similar to a regular loan. However, the repayment of that money can be structured in a way that is more flexible than a standard loan.
Paid In Full
You could repay the loan strictly as a royalty percentage of your revenue, or minimum gross revenue, over a specific period of time.
Or the loan may have a set interest rate and payment schedule in addition to the revenue aspect. This way, the company refund amount will only be interest for a specific amount of time (a year or two).
At that point, the company could pay off the principal and interest from their business checking account based on a previously agreed upon amortization schedule in addition to a royalty percentage of your business revenue.
This way, the total payback amount that the investor receives would be no higher than about three times the original funding amount.
Either way, the investor has a personal guarantee of a return on the loan since he will be a getting a payment check every month and will also receive royalties as a percentage of revenue increases.
Yalber Business Loan Types And Office Locations
Yalber business financing is a great source for a royalty investment loan for business owners. The royalty investments Yalber offers are different from many other forms of loans.
Personal Guarantee Or Collateral
They don’t require a personal guarantee or collateral in order for you to receive your necessary working capital. Their application process is simple and you can receive funding up to $500,000 within 24 hours after approval.
With that said…
You have to meet certain criteria in order to receive royalties investing. In this Yalber review, we will go over everything regarding business financing and royalty investments Yalber has to offer and whether or not it’s best suited for your business journey.
Yalber Business Finance also works hard to help small business owners by offering them the funding that will permit them to expand and grow their neighboring communities. They have five business site offices across the United State located in:
- San Diego
- New York
- San Francisco
They also have branches in London, England. However, it’s important to note that you don’t have to live any of these areas in order to get the royalty investment funding that you need – Yalber offers small business owners funding anywhere in the World.
What Is Yalber Financing?
Yalber has been in business since 2007. Their goal is to provide business financing for companies so that they can succeed in their field. They offer financing for both small businesses with home offices to larger businesses with locations around the world.
According to the website, Yalber’s goal is to provide business owners with unsecured and fast working capital. Their investment plans are designed to increase and support your revenue. They specialize in developing long-term and personal working relationships with their customers.
Yalber takes pride in giving stellar customer service to all its members. You could go to the homepage on their website and have a chat with one of their team members. You could also call them if you have any questions regarding your account.
There are also videos on their site detailing their services and how a royalty investment companies might be a good option for you.
How Does Yalber Work? (Read Full Yalber Review Here)
The main function of Yalber is to offer royalty based investment funding. The way the company makes money is by getting a percentage of businesses future income. What you get in return is financing upfront.
What sets Yalber apart from other companies is that they do not collect payment past a certain point. Just to be clear, they don’t keep making money from your profits over the entire life cycle of your business.
As soon as the money that was borrowed is fully paid back, then the royalty payment plan is ended.
On top of that…
The royalty percentages that you agree upon with Yalber are fixed and do not fluctuate. What this means is that you are not required to pay back more if your business profits skyrocket.
However, if your business does hit a dry spell, you likely will not be able negotiate a new payment plan.
An Illustration of Royalty Based Financing
To show how royalty-based financing performs, what if a company requires $1-million of financing. It is likely that the customer could discover someone willing to lend the money on a ten-year compensation plan with an interest-only refund in the first year, principal and interest paid back in equivalent installments over the next nine years and, perhaps, payments of 3% of the company’s quarterly revenues during that same nine-year repayment time-frame.
Along with the interest and royalty deal amount, the investor would stand to gain a principal return, and the customer would have realized a substantial low-cost business financing without losing any business equity.
A refund scenario like this would manifest even if there were no interest applied to lifetime of the loan and simply engaged a repayment centered around a percentage of business revenue.
If you think about it…
That same $1 million loan might need a long refund time frame and the money that the investor would make back would fluctuate based on the ebb and flow of the customer revenue.
Of course, if there were no interest, then the repayment of the $1 million would carry less risk because all the payments back to the investor would come from the company’s revenues.
What’s even better…
With either scenario, it looks like it would be a win-win for any one. And, if by chance the investor does take a small equity position in the company, the investor could see an additional return without taking any more risk.
Obtaining Working Capital
Yalber also give you the opportunity to get working capital in place of receiving royalties from your profit. Working capital is basically a way of describing how good your business is at making money.
It’s also a way to determine your company’s short term business condition. That is to say, working capital is the money you need to keep you business running every day.
The way you calculate your working capital is by subtracting your holdings from your liabilities. The reason working capital is so important is that it show how successful you are as a business owner.
Yalber invests money into the products or services you provide in order to provide you working capital. They provide you with a loan from the start for a percentage of your company’s future income.
Then, as soon as you have paid the loan in full, the royalty rights are given back to your business and payment is no longer needed.
What Makes Yalber Different?
This is where Yalber stands apart from other institutions, because these other royalty investment companies make you pay as long as your business is running. This makes Yalber Royalty Financing the company to work with.
Getting funding through Yalber couldn’t be any easier.
If you qualify, funds could be available to you in as little as 24 hours. And according to their website, most of their customers have the money they need in their hands in 72 hours.
This is fantastic for small business entrepreneurs who have to get money right away. But with that said, the average wait time is 7 to 10 business days.
Now, don’t get too excited, because Yalber can be tricky to get qualified.
Your business has to be in operation for no less than two months. Also, if you have no credit or bad credit, getting a royalty loan from Yalber may serve a bit challenging.
Nevertheless, there is nothing to suggest that Yalber does a credit check. There isn’t much information online regarding services offered by the company, so this makes it a little difficult to compare and contrast them with other similar companies.
Highlights Of Yalber Services
A business owner can see quick and easy funds deposited into his account in only 24 hours, with the average time for delivery being 72 hours. This certainly is faster than the average 10 day turnaround time for other loan institutions.
Limited Documents Needed:
You just need documents regarding your business financial history going back three months. This is much better since most companies need a credit history of at least a year in order to accept an application. Ideally, this would be great for a business owner who has been in business for very long and wouldn’t have very good financial standing.
Personal Guarantee or Collateral Not Required:
This is beneficial because you don’t need to present a personal guarantee or offer any collateral to be qualified for royalty based investments. The majority of loan institutions expect you to complete any one of these in the event that you’re unable to make sure your loan is paid in full. No one knows for sure if Yalber sends reports to the 3 credit bureaus, so it would be a good idea to make sure that you’re always on time with your royalty investment payments and you business remains in good standing.
Minimum Gross Revenue Requirements:
In order to be considered for a royalty investment, your business would need to have an average income of $7,000 per month. Although this is higher than other loans, keep in mind that Yalber doesn’t require a personal guarantee or collateral from you. This is how they determine if you make enough money to comfortably make your investment payments.
Funding Amount And Fast Approval Time:
The amount of funding can range any where from $5,000 to $500,000 and is permitted to be used for any business purpose or business health, but is contingent up customer review. You economic standing will determine how much you will be eligible for. Some loan companies will mandate that you apply more funds to a certain goal.
But in this Yalber review, we note that they offer you financial freedom with regards to how you spend the money you receive, so long as it relates to your business. To make sure your investment royalties stay within budget, it’s imperative that you don’t spend more than necessary on your business ideas.
24 hours is usually the timeframe that it takes in order to deny or approve your application. They do this as a courtesy so that you can move on to find other financing just in case you don’t pass a customer review for a loan with Yalber.
How Do You Apply For Yalber?
Submit an application online at the Yalber website: Information about Yalber and the application procedure seems to be simple. It’s a smart plan to gather together the paperwork you may need before starting an application either on the Yalber website or on Commission Junction. These could include your personal data as wall as your business data going back 2 months. This will help you to receive your funds as fast as possible. Afterward, start the application process.
Yalber will get in touch with you by email to discuss your options: You should hear back from your account manager with 24 hours. Once you get approved, you’ll receive a list of options to choose from. After you make your selection, our risk analysis team will give their evaluation and transfer the funds into your business checking account the next business day.
Sign up with Yalber: After you review Yalber and sign up, the company promises to give you excellent customer service. They will have a dedicated customer portal and a personal account manager assigned to you. That means that whenever you contact the company regarding your business health or any other concerns, you will speak to a representative who knows all your income needs and not a new team member. You will have access to your Representative 24/7 and even on holidays and on top of that, you can visit the site to chat with someone any time of the day.
Terms & Fees
The Pros And Cons Of A Yalber Royalty Investment Loan
- Simple application procedure – you will know within a day if you are authorized
- You can get a loan that ranges from $5,000 to $500,00 depending on what you need
- Once you’re approved, the funds will be in your checking account the next business day
- Don’t worry if you have bad credit or no credit with submitting your application. Yalber doesn’t consider your credit history. Approval is based on your business income level. Also, there are no high interest rates.
- In contrast to a conventional loan, a royalty Investment may inspire to run your business successfully. Many entrepreneurs find themselves bringing home more money so they can make up for the percentage they’ll need to refund.
- Once you have paid in full all the money you borrowed, you’ll owe nothing more. Some companies actually mandate that you keep making monthly payments for as long as you’re still in business. But with Yalber, once you’re paid up, you can start keeping all your profits to yourself.
- Yalber will assign an account manager to you and you’ll have access to them and the Yalber website portal 24 hours a day.
- You can contact Yalber at any time, even holidays
- You can use your phone, email, or online chat to get in touch with Yalber
- As long as it’s business related, you can use your funds however you choose. Some companies will have strict guidelines, but with Yalber you have full financial discretion to use your funds how your choose.
- You won’t find much information about Yalber and its royalty investments online. This can prove a little difficult to make an informed decision about the services of the company.
- In order to be considered for a royalty investment, your business would need to have an average income of $7,000 per month. Although this is higher than other loans, keep in mind that Yalber doesn’t require a personal guarantee or collateral from you. This is how they determine if you make enough money to comfortably make your investment payments.
- It’s hard to tell if Yalber sends reports to the 3 credit bureaus. This could be a double-edged sword depending on your credit history in that if you make your payments on time, you will want Yalber to report your history so that your scores will go up. Otherwise, if your credit history is bad, you’ll likely want them to keep a lid on it.
Who Can Benefit From An Investment Loan With Yalber Royalties?
A Yalber Royalties Investment Loan is ideally suited for an entrepreneur / small business owner who has questionable credit but has good business cash flow and wants to expand his or her operations. As long as you can show that you have at least a monthly income of $7,000 and have been in business for at least two months, then you should have nothing to worry about.
How I Used Yalber To Fund My Own Lead Generation Business
I’ve actually used Yalber’s service with my own business. Basically what I do is create websites that generate leads for other business owners in my local area. So after I signed with Yalber, my account manager got back with me and chatted about what I would like to do to grow my business.
I explained to her that I would like to use the money to create 50 new websites over a span of about 2 months. I was going to have to outsource this since I wouldn’t have been able to build a website and get it up and running in the timeframe I wanted.
Here’s the deal:
I currently have 15 websites right now that are bringing me an average of $750 per month for each site. Which comes out to just a little over $11,000 per month. So using these same numbers and scaling to 50 more sites would put me at $48,750.
Right now, I have 25 more sites completed with another 20 in the process. So it should just be a matter of a couple more months and I’ll have them all completed.
What’s really great about this business model is that the skills I’ve learned not only works great for my business, it also works great for just about any other business as well.
Think about it…
All businesses need customers, right?
That’s exactly what I do, I find businesses the customers that they desperately need to keep them from either 1) Going out of business or 2) Growing and expanding their business.
If you would like more information regarding how I do this, please click here.
The content on this site is not offered or authorized by a bank advertiser, credit card issuer, airline, or other individual. The views conveyed hear are only that of the author and may not have been examined, evaluated or otherwise approved by any such individuals in these posts.
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