Royalty Finance

Royalty financing provides a flexible alternative to agricultural project financing aligning the interests of investors and farmers through a revenue-sharing model, unlike traditional debt or equity financing, which generally enforces rigid repayment schedules and strict lending conditions. Through tokenisation our royalty financing model enables projects financed through agriiClub to repay its financial backers a portion of their revenue. Our smart contracts flexibly adjust these payments according to the revenue level, reducing financial pressures during slower periods and since everything is recorded on-chain stakeholders can verify income generated and the respective royalties due. This model implemented on-chain de-risks foreign investment into African agriculture, reducing the fear, uncertainty, and doubt (FUD) surrounding investing into Africa. To further de-risk financing projects, agriiClub assumes the role of a management company tokenising the project assets including land and machinery for the duration of the project. When target repayment amount has been met along with the projected royalty payments the tokenised assets are transferred back to their respective owners. This approach provides transparency and protection for all stakeholders, whilst ensuring the ecosystem does not enact predatory funding schemes.