OT (sorta) : Financing your own

[dan l.]

i'm looking for anyone with experience/advice on obtaining a LOAN
for the sole purpose of replicating and promoting one's own
CD.

of course, my project has not yet found an investor in the
form of a record company.. and frankly, we're interested
in borrowing the money ourselves, at some *reasonable* rate,
(considering money is "cheap" at the moment), so as only
to be in debt to the bank, rather than signing away royalties
for having someone front the money.

does anyone know of any bank (or ANY organization) anywhere
that gives out such loans...?

do standard banks offer these, if the borrower presents
some sort of "case" for getting a non-personal-loan rate ?

if so, is it just a matter of incorporating the band/artist ?
(i have no idea how that's done of course, but if it's the
only way to get a bank to send money our way, at lower-than-prime,
i'm all ears!!)

basically i'm being my own record company.... but i'd like there
to be as little red tape as possible. i'm just looking for
something of the equivalent of a car loan.. borrowing
5-8 grand, and paying interest somewhere in the
realm of 5-8%, payable over 5 yrs.

is there a newsgroup where discussions such as these are
tossed about ?

is this a pipe dream ? damn. i'm thinking of buying a car,
selling it the next day, and just using that money to
finance. hoping it doesn't come to that.

any help, advice, direction, etc.. would be much appreciated.

thanks in advance,
dan

[nmm]

On Wed, Nov 19, 2003 6:44 PM, dan l. > wrote:
>is this a pipe dream ? damn. i'm thinking of buying a car,
>selling it the next day, and just using that money to
>finance. hoping it doesn't come to that.
>
>any help, advice, direction, etc.. would be much
>appreciated.
>
>thanks in advance,
>dan
>

Record companies give out "advances against mechanical royalties".. Wich
are Loans.. except in the case the record doesn't sell.. Then depending on
your contract ..ie: Cross colateralization(SP) that money is not recovered.


If you present a bank witha small bussiness plan.( where the money is
going .. expected returns) . you might be able to get something. Most times
Banks look at anything "Music" as high risk... especially with no track
record.. or collateral.



In Canada there is Factor, and VideoFact.. that give out touring, promotion
and production loans.. I'm not sure if there is an equivilant organisation
on the States.

[Justin Ulysses Morse]

Just put it on your credit card. You're going bankrupt anyway so it
doesn't really matter.

ulysses


In article >, dan l.
> wrote:

> i'm looking for anyone with experience/advice on obtaining a LOAN
> for the sole purpose of replicating and promoting one's own
> CD.
>
> of course, my project has not yet found an investor in the
> form of a record company.. and frankly, we're interested
> in borrowing the money ourselves, at some *reasonable* rate,
> (considering money is "cheap" at the moment), so as only
> to be in debt to the bank, rather than signing away royalties
> for having someone front the money.
>
> does anyone know of any bank (or ANY organization) anywhere
> that gives out such loans...?
>
> do standard banks offer these, if the borrower presents
> some sort of "case" for getting a non-personal-loan rate ?
>
> if so, is it just a matter of incorporating the band/artist ?
> (i have no idea how that's done of course, but if it's the
> only way to get a bank to send money our way, at lower-than-prime,
> i'm all ears!!)
>
> basically i'm being my own record company.... but i'd like there
> to be as little red tape as possible. i'm just looking for
> something of the equivalent of a car loan.. borrowing
> 5-8 grand, and paying interest somewhere in the
> realm of 5-8%, payable over 5 yrs.
>
> is there a newsgroup where discussions such as these are
> tossed about ?
>
> is this a pipe dream ? damn. i'm thinking of buying a car,
> selling it the next day, and just using that money to
> finance. hoping it doesn't come to that.
>
> any help, advice, direction, etc.. would be much appreciated.
>
> thanks in advance,
> dan

[Blind Joni]

>does anyone know of any bank (or ANY organization) anywhere
>that gives out such loans...?
>

yeah..it's called "Family"


John A. Chiara
SOS Recording Studio
Live Sound Inc.
Albany, NY
www.sosrecording.net
518-449-1637

[James Perrett]

nmm wrote:

>
> In Canada there is Factor, and VideoFact.. that give out touring, promotion
> and production loans.. I'm not sure if there is an equivilant organisation
> on the States.

In the UK some people have managed to obtain grants from the National
Lottery to help with the expenses related to recording, pressing and
publicising an album. It seems that you have a much better chance of
getting a grant from the lottery people than you have of winning
anything in it.

Cheers.

James.

[Mike Rivers]

In article > writes:

> i'm looking for anyone with experience/advice on obtaining a LOAN
> for the sole purpose of replicating and promoting one's own
> CD.

> does anyone know of any bank (or ANY organization) anywhere
> that gives out such loans...?

Only with good collateral, like your house. I don't know of anyone who
has ever received a bank loan for manufacturing and distributing their
own music. You could see about getting a loan for starting a record
company, but you'd better have a real business plan and have done
research that shows that you'll be making enough money to pay back the
loan.

A number of people in the folk music world have hit up friends to
finance their projects. Someone still owes me fifty bucks from an LP
that they made over 20 years ago. Somehow there's always enough money
to make the next record, but never enough to pay off the debts.




--
I'm really Mike Rivers - )
However, until the spam goes away or Hell freezes over,
lots of IP addresses are blocked from this system. If
you e-mail me and it bounces, use your secret decoder ring
and reach me here: double-m-eleven-double-zero at yahoo

[Rick Powell]

(dan l.) wrote in message >...
> i'm looking for anyone with experience/advice on obtaining a LOAN
> for the sole purpose of replicating and promoting one's own
> CD.
>
> of course, my project has not yet found an investor in the
> form of a record company.. and frankly, we're interested
> in borrowing the money ourselves, at some *reasonable* rate,
> (considering money is "cheap" at the moment), so as only
> to be in debt to the bank, rather than signing away royalties
> for having someone front the money.
>
> does anyone know of any bank (or ANY organization) anywhere
> that gives out such loans...?
>
> do standard banks offer these, if the borrower presents
> some sort of "case" for getting a non-personal-loan rate ?
>
> if so, is it just a matter of incorporating the band/artist ?
> (i have no idea how that's done of course, but if it's the
> only way to get a bank to send money our way, at lower-than-prime,
> i'm all ears!!)
>
> basically i'm being my own record company.... but i'd like there
> to be as little red tape as possible. i'm just looking for
> something of the equivalent of a car loan.. borrowing
> 5-8 grand, and paying interest somewhere in the
> realm of 5-8%, payable over 5 yrs.
>
> is there a newsgroup where discussions such as these are
> tossed about ?
>
> is this a pipe dream ? damn. i'm thinking of buying a car,
> selling it the next day, and just using that money to
> finance. hoping it doesn't come to that.
>
> any help, advice, direction, etc.. would be much appreciated.
>
> thanks in advance,
> dan

I worked as an engineer and studio player on a project in the late
'80's and early 90's where the primary culprit went out and solicited
thousands of investment $ from a magazine distributor, a grocery store
chain owner, and a person who got a huge injury settlement, as an
investment in a recording project. I think they were collectively in
for about $250,000 before it was all over with.

The band changed membership many times, the project dragged on for
about 4 years, and we finally did a record company showcase in LA
which was very expensive to put on (with airfare, hotels, per diem,
hall rental w/sound and lighting, attorney fees, etc.)

Well, there was no interest, and that was the end of the project and
the money.

OTOH, I knew a guy who went to NYC in the late 70's, starting out
singing as a street musician in Grand Central Station, who has had a
long and somewhat successful music career.

My 2 centavos, make that 3:

* I'm glad it wasn't MY money.
* The investors were the type who thought nothing of blowing $30 grand
on a weekend in Las Vegas. They could afford to lose it. On
something with as high as a risk/reward ratio as the music
business...especially in an age when it has been devalued by the
download generation...this is the best place to look for the kind of
money that actually might make a difference (but see #3 also)
* You can throw as much or as little money at something as you want.
It's either gonna stick to the wall or not with the arbitrary and
capricious whims of the public and the record co's.

RP