# Services Improve Creditworthiness If a funder's services make an artist's revenue higher and steadier, that artist is a better credit risk. The funder can then offer better terms than an outside funder. - An outside funder prices from past statements only. It cannot change the future curve. - A funder that also runs release and growth work can push the curve up and smooth it. - A steadier curve means lower loss risk. Lower loss risk supports a lower price for the artist. - So the same artist should get different terms with the services and without them. ## What makes this true 1. **Proof, not a claim.** Show that artists who use the services earn more, and more steadily, than artists who do not. Compare like with like. 2. **Continuous, not one-off.** A one-off audit shows a single moment. Monthly monitoring shows the effect over time and gives a lender a data trail. 3. **Done for the artist.** Artists do not use dashboards. They want someone, or an agent, to do the work. Adoption decides whether the effect is real. 4. **Retention.** A funded artist who is happy with the services stays. Retention is part of the return. See [[Royalty Financing Is Specialty Finance#Role of value-added services]]. > [!question] Open question > How big is the effect, and can it be measured before a lender asks for it? ## The two tracks this links - **Product track:** the services across [[Create Release Grow Artist Model|create, release and grow]]. - **Capital track:** the underwriting model and the credit facility. See [[Ten West Future Mode - Test Plan]]. - The data from the product track feeds the underwriting model on the capital track. ---- tags: #boat links: [[Music Royalty Financing MOC]] [[Create Release Grow Artist Model]] [[Revenue-Based Financing Analogues]]