There are only six financing methods in the world, and there can't be a seventh! For example, if you have a project that can earn 100 million yuan in five years, but you need to raise 2 million yuan first, how do you find this money?
1. Loan thinking: borrow 2 million from the bank in the form of collateral. After success, the principal and interest will be repaid, and if it fails, it will face the risk of the collateral being taken away and declared bankrupt.
2. Borrowing thinking: borrowing 2 million from relatives and friends, you need to ensure repayment, otherwise you will face civil legal liability.
3. Equity thinking: write a business plan, a roadshow plan, and transfer 20% equity to investors to raise 2 million. After success, 20 million will be distributed to investors, and they will not be liable for failure and can receive a five-year salary.
Fourth, lottery thinking: the project will be cut into 100 million copies, 2 yuan each, open retail, recover 200 million funds, and issue 100 million as a winning bonus.
5. Capital thinking: packaged into a project ready to be listed, raise funds globally, raise 2 billion according to the amount of the company's shares, market value of 20 billion, and cash out.
6. RBF financing: the investor invests 5 million, the return on investment is 1.5 times, the investment cycle is 5 years, and the monthly repayment is 6% of the revenue. Avoid debt and equity financing defects, no collateral required, and avoid stress.
There are a variety of financing methods in business, including finding banks, investors, customers, suppliers, assets, projects, equity, business models and other financing methods. In entrepreneurship, understanding the multiple financing methods is essential for project success. Among them, RBF financing, as an emerging financing method, has certain advantages.
First of all, RBF financing does not require collateral, which greatly reduces the financial pressure on entrepreneurs. Compared with traditional loans, the lack of collateral means that the entrepreneur's personal assets are not directly threatened, reducing the risk.
Secondly, under the RBF financing model, the return of investors is linked to the revenue of the project, which avoids the situation of passive equity transfer by entrepreneurs in traditional equity financing. Investors share risks and returns with entrepreneurs by obtaining returns according to a certain percentage of revenue, and realize benefit sharing.
Thirdly, RBF financing does not interfere with the business decisions of entrepreneurs. Unlike equity investment, RBF financing does not involve a corporate governance structure, investors do not participate in the day-to-day operation and management of the company, and entrepreneurs can maintain control of the company.
In addition, the RBF financing model has a high degree of flexibility. Investors and entrepreneurs can negotiate and formulate a repayment plan according to the actual situation, including the repayment ratio, return multiple and investment cycle, etc., to fully meet the needs of both parties.
In general, RBF financing, as a new type of financing, has certain advantages and potential in the current entrepreneurial environment. Entrepreneurs should actively understand and experiment with this financing method to better support their entrepreneurial projects.
