Royalty Exchange Introduces ‘Term Advance’ Financing Revolution

Debt-free option results in bigger advances at better rates.
March 8, 2018

DENVER, March, 8, 2018 — Royalty Exchange, the world’s largest online marketplace for royalties, today introduced a revolutionary new financing option for creators called Term Advance.

Unlike traditional advances, Term Advance returns creators’ royalty income after a fixed period of time… no matter what. It’s more like a temporary sale rather than a loan.

Under traditional advances, artists’ earnings are funneled to the advance company until a fixed amount of money is repaid. The terms of these deals often carry high effective interest rates, and expensive penalties if the repayment schedule is not met. And since the size of these advances are so small, artists typically just get a new advance once the old one is paid off.

Term Advance offers a sharp departure from this cycle of debt. There’s no obligation to repay a fixed amount.

What’s more, creators decide what part of their catalog they take the advance on, while they continue to collect royalties on the part they keep. Anything earned from new music projects created following the advance belongs solely to them and is not subject to recoupment.

Since 2016, creators have raised over $14 million on Royalty Exchange selling a slice of royalties to investors, who compete to offer best possible price. Term Advance takes advantage of this same competitive marketplace, which ensures creators still get the best deal, but adds the option to return their royalty stream at the end of the term.

“Royalty Exchange exists to give creators more options, not less,” said Royalty Exchange CEO Matthew Smith. “Under the Term Advance scenario, an artist could temporarily sell, say, 25% of an existing catalog. This provides a larger lump sum in return than any traditional advance could provide. The investor collects 25% of that catalog for the term of the advance. The artist collects the other 75%, not to mention 100% of anything earned from any new work. When the term of the advance is over, the 25% of the old catalog’s earnings reverts back to the artist.”

To learn more about Term Advance, how it works, and how it benefits creators, please read today’s blog post.


Attending SXSW? You can find the Royalty Exchange team at the following events:

  • Thursday March 15 | A2IM Member Breakfast (Iron Cactus)
  • Thursday March 15 | SXSW Panel: New Ways to Finance a Music Career (Austin Convention Center Room 17A)
  • Friday March 16 |BMI Acoustic Brunch (Four Seasons Hotel)

About Royalty Exchange

Royalty Exchange helps creators raise money by connecting them with private investors. We operate the world’s largest online marketplace for royalties. Creators love us because our transparent marketplace gets them fair market value for their work. Investors love us because we provide access to uncorrelated, income-generating opportunities. And our commitment to transparency and honesty ensures value for all. Follow us on Twitter and Facebook.

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