Patreon will now give creators cash advances on their subscription money

Patreon, the site creators love because it helps them make money off their work, has started a program called Patreon Capital, which grants micro-loans to creators. It’s essentially a cash advance: you get money now in exchange for some of your future earnings plus a small premium. It’s different from Patreon’s usual business — which is enabling direct subscriptions to people whose work you like, then taking a cut off the top — but it will diversify the company’s revenue, which should make Patreon a more sustainable business.

As Nick Quah’s newsletter Hot Pod reports:

[G]iven their history and positioning as a creator support platform, Patreon believes they’re in a better position than banks to provide creators with the business support...

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