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There is a way for Digital Distributors to Fund Indie Labels

The specialty music finance company Sound Royalities, LLC enables distributors to provide advances to existing labels. Funding for the advances would be provided thru the Edge Funding Program while the distributor gets a little edge over the competition. Sound Royalties front the cash, the distributor packages the deal, and the label can boost their operations. 

Sound Royalties advances artist, producer, and songwriter royalties paid thru music labels, distributors, publishers, and performing rights organizations like Sound Exchange.

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Sound Royalties, LLC