Kobalt Music, which administers music publishing rights, is now offering its songwriters and rights holders the ability to draw from royalties earned but not yet received.

The offering is the result of a deal Kobalt sealed with the Royal Bank of Scotland. Kobalt announced the global offering today (March 1) at Billboard's Music & Money conference at the St. Regis Hotel in New York.

Kobalt calls this offering its pipeline royalty advance. Rather than waiting for quarterly payments under their administration deals, Kobalt clients can elect to draw on money earned but not yet received by Kobalt. The clients - songwriters or other rights holders - then pay a higher administration fee until that draw is recouped.

"Like a revolving credit line, clients can access money when they need it - even multiple times - without extensive negotiations or delays," says Willard Ahdritz, Kobalt CEO. "It's a 'dip, dip-out' financial approach that truly works more efficiently, and the bottom line results in more money to the rights holder."

Ahdritz says that people can check in the daily newspaper for what a short or long-term loan can cost them and compare it to a Kobalt pipeline royalty advance. He says the advance will have the same rate as a secured low-interest loan.

The company offered the pipeline advance to a few clients over the past 18 months. Those offerings were backed by a fund created by Kobalt institutional investor NewMedia Spark.

Now with the Royal Bank of Scotland, Kobalt says it can offer the deals to all of its clients.