I don't think that you should see it as a loan, because AFAIK the band does not need to pay the advance back.
The band sells the right to its music, in exchange for the advance. If the band's income exceeds 1000% of the advance, it will get 10% of the income as an extra bonus. And when the contract ends, the label returns the rights back to the band.
What does the band get? An advance, possibly a bonus, marketing and promotion for the brand, and usually the rights to some other forms of income (concerts, merchandise etc).
The band sells the right to its music, in exchange for the advance. If the band's income exceeds 1000% of the advance, it will get 10% of the income as an extra bonus. And when the contract ends, the label returns the rights back to the band.
What does the band get? An advance, possibly a bonus, marketing and promotion for the brand, and usually the rights to some other forms of income (concerts, merchandise etc).