Patreon debuts micro-loan feature for creators

Cash advances could be a win-win for both creators and the company.

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Until now, making money on Patreon has meant waiting for subscription payments to roll in on the first of the month. But that’s about to change: the platform is introducing a program called Patreon Capital, which will allow creators to take an advance on next month’s earnings, minus a small premium. It’s essentially a micro-loan program for creators.

New revenue for Patreon — In its six years of business, Patreon has made a name for itself as the best place to monetize your content-making. Patreon has at times struggled with its revenue models, sparking backlash amongst creators and patrons alike. Now that its subscription models have settled into standardization, Patreon is looking for new revenue streams.

No more waiting, but a piece of the pie — Even at its best, Patreon still requires creators to wait until the beginning of the month for that paycheck to roll in. Sometimes a monthly lump payment just doesn’t work — especially for creators who might need to finance upcoming projects. Patreon Capital will make it easier for creators to access their funds at any time of the month. That kind of advanced funding is difficult to come by, especially for artists.

Still, Patreon will take a small cut of the loan, which will allow the process to be profitable for Patreon, too. The idea evokes the thought of seedier check-cashing and payday lending schemes, which have historically asked customers to take a sizable hit if they need money fast. As long as Patreon keeps its rates reasonable, it can hopefully avoid comparisons — and maybe that revenue boost will help keep Patreon sustainable for the future of content-creation.