Document background
The Royalty Loan Agreement is a specialized financing instrument used when a company seeks funding against future revenue streams or royalty payments, typically from intellectual property or other revenue-generating assets. This type of agreement, governed by Irish law, provides an alternative to traditional debt or equity financing, allowing borrowers to access capital while sharing future revenue with lenders. It is particularly suitable for companies with strong IP portfolios or predictable revenue streams but limited hard assets for traditional security. The agreement must comply with Irish financial services regulations, including the Central Bank Act 1997 and relevant consumer protection legislation where applicable. The document includes comprehensive provisions for loan terms, royalty calculations, reporting requirements, and protections for both lender and borrower.
