Funding Model
Qualification Requirements
Funding Amount
Repayment Terms
Cost of Funding
Impact on Future Revenue
Payment Flexibility
Credit Impact
Speed of Access
Use Case Flexibility
Transparency
Risk
Industry-Specific Advantages
Advance on historical royalties
Proven royalty revenue; catalog history
10–12 months of catalog revenue
Fixed term (1+ years); paid from catalog royalties
11%–15% flat recoupment fee + origination fee
Limited to catalog royalties; excludes new releases
No flexibility; tied to fixed recoupment rate
No credit check; no impact on credit score
3–5 days after approval
For catalog royalties only; excludes other revenue sources
Clear terms; recoupment rate and fees disclosed
Long-term commitment; early repayment penalties
Tailored to musicians; supports catalog monetization
Lump sum provided upfront; repaid over a fixed term with interest
Established business history; credit check and documentation required
Varies widely; can range from a few thousand to millions depending on business size and creditworthiness
Fixed monthly payments over a predetermined term; typically 1–25 years
Interest rates typically 3%–10%; may include origination fees or prepayment penalties
Reduces monthly cash flow but does not directly affect revenue sources
Inflexible; fixed monthly payments regardless of revenue fluctuations
Significant; repayment history impacts credit score
Takes days to weeks for approval and disbursement
Highly flexible; can cover operational costs, equipment, expansion, or other business needs
Clear terms but may have hidden fees like prepayment penalties
High risk if cash flow issues prevent repayment; collateral may be required
Tailored loans available for specific industries, including creative sectors like music