How Does HyDistro Advance Funding Work?

HyDistro’s Direct Advance lets you get funded against your future streaming royalties — no label, no loans, and no giving up ownership of your music. Here’s the full breakdown of how it works, from application to full recoupment.

What this means

A Direct Advance is money paid to you upfront, based on your streaming performance. Instead of paying it back out of pocket, your royalties automatically pay it down over time. Once it’s fully paid off, all your royalties go back to being 100% yours.

Eligibility

To qualify, you need an average monthly streaming income of at least $100/month over a 6-month period.

Step 1: Apply

You apply through your advance dashboard, providing details about your artist profile, the rights you’re including (Sound Recording, Song Writing, or both), and whether the advance covers your existing catalog or your catalog plus new music. You’ll also choose your term length, which affects your offer range — see How Is My Advance Offer Amount Determined? for the full breakdown of how term length and income affect your range.

Step 2: Documents

You’ll need to submit supporting documents as part of your application, and our team may request more during review. See What Documents Do I Need for an Advance Application? for the full list and accepted formats.

Step 3: Review and offer

Once submitted, your application moves through several stages before funding — see What Are the Advance Status Stages? for a full breakdown of what each stage means and how long it typically takes. If approved, you’ll receive a funding offer to review.

Step 4: Funding

Once you accept your offer, your advance is funded and lands in your account. Recoupment begins immediately from that point.

Step 5: Recoupment

From the moment you’re funded, your royalties are automatically applied toward paying down your advance balance. This is tracked in detail — see How Does the Recoupment Ledger Work? for how your monthly balance updates, and how to read your recoupment progress.

Recoupment has no fixed schedule or deadline — it simply continues based on your actual royalty performance until fully paid off.

Fees

Separate from recoupment, a HyDistro Funding Charge applies to every advance. See What Fees Apply to Advances? for exactly how this fee works and how it’s collected.

Multiple artists and advances

If you manage more than one artist on a Pro plan, you can have a separate active advance for each. See Can I Apply for Multiple Advances? for the full rules.

Tracking your application

You can check on your application anytime — see How Do I Track My Advance Application Status? for where to find your current status.

Leaving HyDistro with an active advance

An outstanding advance stays tied to your royalties until it’s fully recouped, no matter what happens to your account. See What Happens to My Advance If I Leave HyDistro? for the full details.

Fully recouped

Once your advance is fully recouped, your royalties return to being 100% yours, and you’re free to apply for a new advance whenever you’re ready.