Start-up Stem to lend $100 million to artists and indie labels

Los Angeles-based startup Stem Disintermedia Inc., launched last week, is offering musicians money they can use to go on tour, record new songs or market their work - without demanding ownership. According to Bloomberg, Stem has created a flat-fee service called Scale that offers financing in the form of a revolving credit line and plans to lend more than $100 million in advances to artists and independent labels. Fees range from 5% to 25%, and Stem also collects a cut when artists use its platform to distribute their music. Stem is backed by the likes of Mark Cuban and Scooter Braun, with clients Ariana Grande, Justin Bieber, Kanye West and Usher, Forbes reports.