BlackandWhite Posted February 10, 2010 Share Posted February 10, 2010 Has anyone borrowed from a lender, in exchange for payment of principal, interest, and a % of royalties (revenues from sales of music in any format)? If so, what issues and negotiation points should I be looking for? It needs to be unsecured, i.e. no dedication of house/dog/son as security. Thanks. "I never knew that music like that was possible." - Mozart ( Amadeus movie) Link to comment Share on other sites More sharing options...
ProfD Posted February 10, 2010 Share Posted February 10, 2010 Record companies have provided those unsecured loans for decades. Folks have used bank loans, credit cards and other creative ways (fundraiser, gigs, etc.) to finance their musical projects. However, the real question is strength of fanbase i.e. # of folks already committed to purchasing the product. Before going to a bank, try to line up private investors. Still helps to have a solid business plan. Also, talk to an entertainment lawyer to figure out how to legitimize the endeavor and insure everyone gets paid. PD "The greatest thing you'll ever learn, is just to love and be loved in return."--E. Ahbez "Nature Boy" Link to comment Share on other sites More sharing options...
Meisenhower Posted February 10, 2010 Share Posted February 10, 2010 I've never heard of ANY commercial lender funding a venture like this on an unsecured basis. Typically, this kind of arrangement works best with private/angel venture funding. YMMV Yamaha C7 Grand, My Hammonds: '57 B3, '54 C2, '42 BC, '40 D, '05 XK3 Pro System, Kawai MP9000, Fender Rhodes Mk I 73, Yamaha CP33, Motif ES6, Nord Electro 2, Minimoog Voyager & Model D, Korg MS10 Link to comment Share on other sites More sharing options...
Mike Davis Posted February 10, 2010 Share Posted February 10, 2010 I financed a couple of CDs by pre-selling them. I also invited people to support my work by kicking in $50, $100 or $500. Give $100, get your name on the website, give $500, and I'll come do a concert at your house kind of thing. You have to have a bit of a base to begin with, but I got a lot of help and made a profit. I'll be doing it again in a couple of months. We'll see if the changes in our economy will affect people's willingness or ability to do this. Link to comment Share on other sites More sharing options...
Jim Alfredson Posted February 11, 2010 Share Posted February 11, 2010 Yep. I'm doing exactly what Mike outlines for the latest organissimo CD (ALIVE & KICKIN') and have done so for our last several releases. If you have a good fanbase, it works great. Keep it greazy! B3tles - Soul Jazz THEO - Prog Rock Link to comment Share on other sites More sharing options...
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