Comment: Re:Fairly well known issue (Score 5, Insightful) 558
Actually, there is a difference. A bank will give you a loan and expect you to pay it back with a certain interest rate. When you've paid that back, you just have to pay your other costs, rest of your income goes into your pocket. With a record label you're forever stuck with only getting a small cut, and sometimes they even withhold a part of this to cover costs they think belong to the artist.
This is different. I don't think anyone would ever take a loan from a bank that demands that 90% of all future income from the investment go straight to the bank.
Also, the bank hopes to see you succeed(for obvious reasons), but can't really impact your success, and would be indifferent of your success if you went to another bank. Record labels on the other hand will try to block independent artists from breaking into the mainstream radio playlists(RIAA labels probably tolerate eachother though), unless they can force/convince you to sign, because you're their competition.