Revenue-sharing financing is in full swing, and traditional equity investment institutions, microfinance companies, individual investors, and even brand agency operating companies are practicing their own investment models under the framework of RBF.
The forerunner is going to step on the pit.
According to Li Zhengliang, COO of Renrendi, in the industrial practice of Renrendi, there are some blind spots that investors need to pay attention to:
1.Debt problem: a project financing 1 million, the purpose is to upgrade the brand and improve competitiveness, so according to this plan and the follow-up income expectations, the RBF investment agency gave better conditions, and the proportion of the return period was nearly half lower, but after the capital financing was in place, the brand did not use the money to do store upgrades and product research and development, but to repay the debt, resulting in a very slow follow-up action, and the cash flow performance was far less than expected, but the terms did not restrict this situation. The two sides continued to cooperate in the pull, and the brand turned around and raised funds to open a new store, and the old store slowly stayed up until the investment expired (the two parties agreed on a hard term).
2.The investment structure is unclear: a catering project, financing from investors to open a new store, the data on the surface is 50% of the investor, 30% of the project party, and 20% of the operation team, a relatively healthy structure, which is also one of the more mainstream expansion methods of the brand chain, and in actual operation, on the grounds that the operation team is not able to contribute, the brand side said that it invested in general, and then the brand side found a franchisee, paid half of the money, and finally accounted for 49% of the shares - in other words, the brand side did not make actual investment, All the risk is transferred to the franchisee and the investor. Not only did there be no investment, but also took more than 10 million brand authorization fees, service deposits and other expenses in this investment, although the return may not be bad, but the risk coefficient of the whole project increased rapidly.
3.Return period flow transfer: RBF mechanism can ensure that in the payback period, the interests of both sides of investment and financing are consistent, the risk is relatively controllable, to the payback period is completely different, the project party often understands the share of the payback period directly as interest, the investment in a self-service brand is very representative, the early cash flow is very good, the payback period is completed ahead of schedule, and the proportion of the payback period is also reduced, but after the end of the payback period, the flow loses its growth momentum, and the performance is very average, which damages the interests of investors.
Li Zhengliang said that these are three issues that are easy to be ignored, now there are more and more projects that accept RBF investment, and the industry has exposed some new risks, it is recommended that investors invest nearby, invest in relationships and trust, invest in scale, and try not to invest in one or two stores or even preparatory enterprises, to have a threshold, to do a good job in the contract terms, to refine the performance terms of the relevant stakeholders under different conditions, and to maintain continuous and in-depth attention to the project party to reduce risks.