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Royalty Exchange Introduces 'Term Advance' Financing Revolution Debt-free option results in bigger advances at better ratesRoyalty Exchange, the world's largest online marketplace for royalties, today introduced a revolutionary new financing option for creators called Term Advance. Unlike most advances, Term Advance reverts creators' royalty income after a fixed period of time… no matter what. It's more like a temporary sale rather than a loan. With 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. Royalty Exchange's 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 their royalties to investors who compete to offer the 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 regain 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. "For example, under the Term Advance scenario, an artist could temporarily sell 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%. When the term of the advance is over, that 25% reverts back to the artist. And any new work created after the advance is not affected at any time." To learn more about Term Advance, how it works, and how it benefits creators, please read today's blog post.
Radio Facts: Royalty Exchange, the world's only online auction marketplace for music and intellectual property royalties, announced today its partnership with the Fender Music Foundation to provide songwriters, musicians, and publishers a new way to give back to the music community. The Fender Music Foundation is a music charity striving to strengthen the state of music education. Donations to the foundation are put towards providing instruments to schools, after-school programs, and music therapy programs. The foundation's expenses are covered by both revenue contributions from its partners, and sales revenue from celebrity memorabilia. Through this partnership, Royalty Exchange will provide a new platform for these revenue-based donations. This will allow songwriters, publishers, and performers to donate a portion of their royalty rights to the Fender Music Foundation. These rights will then be auctioned through Royalty Exchange in order to quickly monetize the assets for maximum value. In addition to the profit received from the auction itself, Royalty Exchange will donate both a percentage of the standard seller auction fee and ongoing administration fee to the foundation. "We are thoroughly excited to provide our services for such a great cause," said CEO and founder Sean Peace. "Not only can we help provide the music community with a new way to give back through the Fender Music Foundation, but we can further support the foundation in its sponsorship of the next generation of musicians." "The Fender Music Foundation is fortunate to be partnering with Royalty Exchange," said Executive Director Lynn Robison. "Our newly formed partnership will help foster awareness of additional opportunities artists have to manage assets, realize tax benefits and engage with the Fender Music Foundation to expand its reach." This new partnership offers another way for songwriters, performers, and publishers to give back to the music community. Rather than signing all sorts of memorabilia, artists can now offer a portion of a continuous stream of revenue, bringing the Fender Music Foundation greater resources to carry out their mission.
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