FAQ – Advance payments during the Covid 19 pandemic

Why are you doing this?

During the current crisis, STIM acknowledges that many of our members, both music creators and publishers, find it increasingly difficult to support themselves through their music. By enabling advance payments, STIM wants to increase the financial security of those who have been badly affected by canceled concerts and by the shutting down of businesses that play music.

How soon can I have the funds available in my account?

The advance is paid out at the end of May 2020.

When was the deadline to apply for an advance?

The deadline to apply was May 5, 2020.

What criteria must be met in order to apply for an advance?

In order to apply for an advance, the applicant must:

(i) have been affiliated with STIM for at least one calendar year from the date of the application for advance payment;

ii) have had income with a total of at least SEK 10,000 from STIM and NCB during 2019.

iii) have been significantly affected financially by the ongoing covid-19 pandemic.

In order for STIM to approve an application for advance payment, it is necessary that:

i) there is no negative balance against STIM or NCB at the filing date;

(ii) there is no payment instruction relating to STIM payments to a music publisher or other company that the applicant owns, partly or fully;

(iii) a music publisher or other company within the same business group as the applicant has not already been approved as a recipient of an advance.

How much money can I get in advance?

The maximum amount is the average of the payments received during the 2018 and 2019 income years, excluding NCB revenue.

The lowest advance paid out is SEK 5,000 and the maximum advance paid is SEK 200,000.

Example 1: NN received SEK 30,000 in 2018 and SEK 40,000 in 2019. If NN meets the criteria for advance payment, they can receive up to SEK 35,000 (30,000 + 40,000 / 2).

Example 2: NN received SEK 7,000 in 2018 and SEK 11,000 in 2019. If NN meets the criteria for advance payment, they may receive up to SEK 9,000 (7,000 + 11,000 / 2).

Example 3: NN recieced SEK 5,000 in 2018 and SEK 8,000 in 2019. NN is not entitled to advance payments since the payment in 2019 is less than SEK 10,000.

Example 4: NN received SEK 400,000 in 2018 and SEK 300,000 in 2019. If NN fulfills the criteria for advance payment, they can get up to the maximum amount of SEK 200,000 (400,000 + 300,000 / 2> SEK 200,000).

Example 5: NN received SEK 0 in 2018 and SEK 14,000 in 2019. If NN fulfills the criteria for advance payment, they may receive up to SEK 7,000 (0 + 14,000 / 2).

The amount of the advance also depends on the total number of members who apply. Ifthere are many applicants, it is possible that the final advance is less than the average of the amounts you have recieved during 2018 and 2019.

What are the assessment criteria based on?

Assessment criteria have been set by STIM's Board of Directors and are designed to benefit STIM's rights collective in the best possible way.

How will the advance affect the distribution of future income? Could this mean that I will not receive anything in future payments?

The advance will be adjusted against future payments, evenly over ten quarters, starting on July 1, 2021. Should a future payment not cover a tenth of the advance, a negative balance will arise. You do not need to act on this, it will be settled in future payments.

How do I handle tax for the advance?

You handle the tax the same way as your regular STIM payments. 

What happens if I have an advance with my music publisher?

Before applying, you must contact your music publisher to cancel the payment instructions of your authorization. Once you have received an approval, you will notify STIM by emailing the approval to us. After that you can submit your application for advance payment.

When can I see the amount of my advance on My pages?

The settlement will be published on My pages the same day it is paid out to you, ie at the end of May.

How and when is the advance payment regulated?

The adjustment is made by deducting the advance against payments from STIM evenly over ten quarters starting July 1, 2021.

How is the initiative financed?

The initiative is financed by deduction on the future payments of the members who received an advance.

Can I apply for an advance more than once?

This is the first and only offer of allowing advance payments. At present, STIM has no plans to allow further advance payments.

How much money did STIM set aside for the advance payments?

STIM has allocated SEK 50 million for this measure.