Investor wants % of Revenue, not Profit?
by starrie, Window Shopper
- Created: April 16, 2010, 6:51 am
My husband opened up his business last year. Business is booming and we need a bigger location. This creates a problem since we do not have the money to make the move currently.
My husband found a private investor that is willing to put up the cash if we agree to pay him a % of our REVENUE, not profit. I have never heard of this before and it feels like a scam to me.
Is this typical? Does it work? More importantly, if it doesn't work, does anyone have any reference material they can point me towards so I can get my husband to read about it rather than just take my word for it?
Thanks so much for your help!
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