80% of artists in the music game don’t know they need an LLC to operate with and on top of that they don’t know how to leverage it for the one thing they need. Money! This is why many struggle working to continue the grind. We know this story far too well but if you want to get support for your journey in the music game read on!
Wait! You can get money for your Record Label LLC Like that??
Did you know that banks can issue you a line of credit up to 30% of your income from the previous year? If you're generating over $100k in total, banks may offer you a $30k line of credit to cover business expenses, outsourced labor, or new products that will help grow your Record Label. Plus, you can write off the interest on that loan! Waiting to use your own money might slow your growth, but using the bank's funds can accelerate your progress significantly.
That’s a unique way to think of Debt!
The truth about banks is that they primarily make money on fees and interest. Therefore, if you use a credit card in the first 12-18 months, you're essentially using free money to gain assets! While this may sound risky, it's not—as long as you can repay the money within that time frame. If you do this, banks will likely give you more access to capital. Even if you have to pay interest, it's not substantial on amounts of $20,000 and below. Utilizing this strategy with your Record Label LLC can help it grow exponentially. Here's the kicker: you can get as many cards as possible within the first 30 days before it's reported on your business credit. Never forget this easy leveraging tactic to grow your music career.
Banks can do that with your Record Label LLC’s Masters!!
The biggest myth about banks is that they don't just lend you money for money's sake, but they also can lend you money based on cash-flowing assets! If you walk into a bank and say your masters are generating $8,300 a month, they will lend you money based on that asset as long as you can show proof of it. If you do this, you can achieve massive heights in your music career. However, if you're still on the fence about it, you must remember that you can't get time back, but you can always get more money.
What If I haven’t made 100k in the last 12 months of my business?
Don’t let that stop you! Credit cards are still available and small loans are available as well. Use the credit to get you up to the 100k the go back to the bank to get a line of credit!
What if the monthly payments get to high?
The only reason you're asking this question is likely due to anxiety about succeeding and owning your own record label. While it's important to be responsible with credit, anxiety alone isn't a good reason to avoid this strategy. If you shy away from this process, it'll take much longer for your record label to grow. Leveraging other people's money can put you in the game and on track much faster than working a job and hoping to pay for everything yourself.
What if all of my masters do well one year but fall the next?
You're essentially asking what happens if you fail. However, banks lend money based on agreed-upon terms. Once you're approved, you can use the funds for the duration of the loan term even if your income has a dip in 30 days after signing the loan. Don't let anxiety about potential future setbacks prevent you from accessing the capital you need to grow today.
Here’s what you can do!
If you're a music creative or executive looking to build your label or publishing company in 60 days or less, with a step-by-step foolproof process, Grab the 60 Day record label course and get it done today! You gain the ability to get real funding, prevent yourself from getting screwed contractually, and keep the middleman out of your pockets. Click the link below to get started right now! If you’re skeptical grab the free guide, "10 Ways to Increase Your Record Labels Profits," a free split sheet comes with the download!
Here's the Payoff
Funding your music career will get you off the ground faster.
Getting off the ground faster puts you in the game where you want to be.
Better positioning in the game puts you in the running to become world-renowned.
What’s it going to cost in failure
Financing it yourself even if you have the money will cause you to burn through your support capital. Once this happens you start to worry that you can't keep going. This will put so much mental pressure on you that creating becomes cumbersome
At the end of the day
If you were struggling with using credit cards, Lines of credit, or your masters to fund your record label without royalty advances or record labels you now have the means to be truly independent from the label systems.
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