Venture helps musicians keep their finances afloat.(News)

Record producer Robin Millar is linking with another producer and publisher to create a financial lifeline for cash-strapped musicians and a means of pumping new investment into the industry.

Cue Capital, set up by Millar in tandem with Badly Drawn Boy producer Gary Wilkinson and royalty administrator Francis Pettican of Westbury Music, is designed to help musicians obtain loans secured against their future royalties.

Millar says musicians often face difficulties obtaining loans from banks, which perceive the music business as high risk. Cue Capital has negotiated backing from a major bank, which will advance loans to parties referred through the new venture.

"The perception of banks is that music is risky--musicians don't wear ties and go into banks with ideas on the back of envelopes," says Millar. "But catalogue isn't [risky] and banks don't understand that."

Musicians and others in the business wanting money--the loans can be for anything from paying off credit card bills to improving studio facilities--can approach Cue Capital, which will perform ...