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Q: Is ProMusic Royalties a start-up, angel investor, bank, or venture capital company?
A: No. We are a privately owned and funded financial group that offers full buyouts and cash advances primarily to entertainment professionals (musicians, actors, producers, writers, etc.) or their heirs based on anticipated royalties. The funds may be used for any purpose without restriction.
Q: Do you only offer cash advances on music, movie, TV, and song royalties?
A: No. We pay cash advances for almost any type of royalties income: software, inventions, intellectual property, toys, games, sports, naming rights, profit participation, etc.
Feel free to contact us if you're receiving other types of royalties that you'd like to explore getting an advance on.
Q: Will I ever lose ownership of my works?
A: You will always maintain full ownership of your works unless you decide to sell the copyrights, most people do not choose this option.
Q: How quickly can I expect to receive my advance?
A: Advances usually close within 3 business days after we have processed all of your paperwork. We always work as fast as possible so the sooner you get us the documents the sooner you'll get your money.
Q: Will I have to pay an application or processing fee?
A: No. It costs you nothing to request an advance. We don't make our money by charging upfront fees.
Q: Do I need to have a good credit history to get an advance?
A: No. We never look at your credit rating.
Q: Do you buy mechanical rights?
A: Yes, but we typically don't unless...
1) there is significant performance or synch income as well;
2) there is a large and steady annual income;
3) there is a longstanding earnings history.
Q: Do I need to live in the United States?
A: No. But the company paying the royalties must have a physical presence within the U.S.
Q: How will you determine the size of my advance?
A: The size of your advance is based upon the gross annual total of the royalties being sold. In general the more you earn the larger your advance can be.
Q: How much of my royalties income can I borrow against?
A: The max. size of your advance will depend on how much is earned annually; which company is issuing the payments; how often the payments are made; the source of the royalties; how many payments we buy, etc.
Q: What type of documentation is needed?
A: To begin, fill out our online form and we will let you know our interest. If you want to proceed we'll need to see at least 4 years of pay history. Once we review the statements we will let you know how much we can advance you.
Q: Do I have to completely pay back my advance before I can request another one?
A: No. If you have additional royalties you may request an advance against them.
Q: Do you cash out or buyout royalties?
A: Yes. We offer both full buyouts and cash advances on royalties.
Q: Do you pay referral fees?
A: Yes. We pay for referrals on new clients. If you know someone who may be interested in selling or getting an advance on their royalties click here to contact us and we will take it from there.
Q: Can I pay off my advance without a pre-payment penalty?
A: Yes.
Q: Are there any limits on how much you advance?
A: Yes. Our minimum advance is $10,000.
Q: Can I sell part of a future royalties payment, or do I have to sell all of it?
A: Yes. Split sale options are available to royalties owners who qualify.
Q: Will I have to pay taxes on my advance?
A: In most cases advances, unlike buyouts, are not classified as taxable income. But you should always consult with your own accountant since State tax laws vary. Some areas may classify an advance as taxable income.
Q: Are there factors that can affect my sale?
A: Yes. Factors that can affect the sale of your royalties include:
Alimony, Approval rights, Back taxes, Bankruptcy, Child support, Divorce, First right of refusal, Matching rights.
Q: Do you buy direct or do you broker?
A: We do both. We buy for our own portfolio and we also consult with our private financial associates. It depends on things like the size of the deal (is it thousands? is it millions?); how quickly does the seller need to raise capital; does the seller want an advance or a buyout; what type of royalties are being sold (from albums, from a TV show or a movie, background cues); how old the catalog is, etc. In short, we do whatever provides the best ROI for the seller.
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