The royalty advances through Unchained Music are meant for artists or labels in all stages of their development. We are able to offer advances as small as $500, and as high as $600,000. This money is available to you in a lump sum, so you can use it on the things you need now- music marketing, studio time, music videos, etc.
Yes. As a part of the royalty advance, you need to move your catalog over to Unchained Music and continue to distribute through us until the advance is paid back through your streaming royalties. We can help facilitate this catalog transfer if you have a substantial back catalog.
In order to offer an advance, we need your raw streaming royalty report data for the past 2-3 years so we can accurately analyze future earnings of the catalog, as well as a list of the catalog that you will be transferring over to Unchained Music. We may additionally need various tax forms depending on your country of residence.
No, however it’s important to fully understand how royalty advances work. Unchained Music and its funding partner, RoyFi, earns money on the difference between the funded amount and the projected earnings, minus our interest rates for borrowing the capital.
Your catalog is projected to earn $100,000 over the next 3 years. We might offer you an advance of $90,000 now, and our cost of capital is (for example) 5% per year. We would make $100,000-$90,000=$10,000 over the course of the 3 years, minus the interest paid over those 3 years.
To accept a royalty advance, you are agreeing to receive a lump sum now in exchange for a portion of your future earnings being kept by Unchained.
Advances are automatically paid back via your streaming royalties. Once the advance is repaid, all of your streaming royalties will revert back to you.