Meet the Companies Vying to Offer Quick Cash for the Music Business

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As music’s revenue streams tighten, companies that offer alternate royalty options are eager to give artists a new way forward

Royalty loan programs have been around for a while. Parviz Omvidar is president of RoyaltyAdvance.com, also known as Royalty Advance Funding, which has brokered deals with household names such as Michael Jackson, War, Kool and the Gang and Roy Ayers. “We are very proud that to have been in the same business for over three decades, which to our knowledge is longer than any other participant in the music finance field,” he says.

Royalty Exchange, who cite a long list of writers as clients that have worked with artists including Wiz Khalifa, NKTOB, Zendaya and Akonto other companies that offer short-term financing. The company hosts online auctions for the buying and selling of music royalties, with investors bidding for a portion of an artist’s royalty stream. Through this process, the artist can sell royalties and collect immediate revenue, with the possibility of regaining the stream at a later date.

“Artists need to think of their catalogs as financial assets, just like labels and publishers do,” Slade says. “Thinking that way gives you far more financial and creative control as an artist, and it will sustain you through tough times like these in a way that lets you emerge in even a better position once all this is over.”

 

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