Best Photography Business Loans Explained
Here are some important details for the loan types outlined in the table above. We’ll look at what the loan entails, its top features, how it applies to the photography industry, and why we recommended the indicated providers.
When it comes to term loans, it’s important to know what would fit your small business and what sum you would need to solve your problems. In the case of a photography business, the term loan from Biz2Credit can be a very good option regardless of whether you need money for equipment, to pay your rent, taxes, to conduct marketing campaigns, or to hire an assistant.
You can borrow between $25,000 and $250,000 if you choose a term loan and the repayment terms are between 12 to 36 months. The interest rate for this loan starts at 8.99% and you will receive your funding in just 72 hours.
In order to be eligible for a Biz2Credit loan, you need at least 18 months in business, a minimum credit score of 660, and at least $250,000 in yearly revenue. If you think your business is a good fit, then you can apply for a loan either directly on the website.
If you are less concerned about your startup costs and more worried about having the equipment you need for the job, you will want to take a look at equipment financing. In most cases, the lender evaluates the overall cost of the items that you need and will then offer a term and repayment plan based on the final cost amount. However, the equipment loan provider may ask you to cover a small percentage of the purchase costs as a sign of good faith.
Equipment financing is ideal for photography studios. Relatively speaking you will have a longer amount of time to pay off those cameras and lenses, giving you more breathing room. If you are looking to buy physical premises instead of renting, you could cover the cost of the studio with this small business funding solution.
Fundera may be better known for offering grants via SBA loans, but they are also an expert in equipment financing. There are also other financial solutions you can tap into, depending on your photography requirements.
Getting a loan for a photography business can prove to be very tricky and almost impossible. Many banks and lenders just don’t want to loan money to a company that uses the framework that a photography business does.
Unlike those big banks and lenders, Fora Financial will loan photography businesses a flexible amount between $5,000 and $500,000. Repaying the loans is flexible as well, and applying is straightforward. Fora FInancial moves fast and will review and finalize an application within 24 hours. When the application is approved, the lending company will receive its funds in its bank account in just 72 hours.
Fora do not dictate what the lender is allowed to do with the money - that is left up to them. However, the company is happy to provide assistance to their clients if necessary.
One thing that new businesses tend to struggle with is keeping afloat after the first few months. Once the initial capital runs out, the business owner is left stressing about what will keep them going. A business line of credit can provide you with the funds you need when you need it. What’s great is that you will only pay interest on what you draw.
When it comes to photography business loans, this revolving credit is probably the most significant feature. You can’t always be sure when you will sell more photographs or when more clients will appear, so you may need emergency funds if equipment breaks or if your operating budget runs out.
BlueVine provides up to $250,000 in credit, which can increase if you keep up your payments for a year or more. It also offers invoice factoring if you prefer that line of credit, but this may be harder to finance in the photography industry.
There’s no reason you should start with a long-term loan if you only need small startup funds. Short-term loans give you the cash injection you need for the first capital outlay and paying for the initial rental for a few months. If you have a solid business plan, you can recover your costs and pay this loan off sooner.
Short-term loans are often ideal for photography businesses as they can help you obtain funding quickly. You can, for example, use the money to acquire real estate for your photography showroom. The interest may be higher than you first anticipated, but you may be able to get a return on investment sooner than you expect.
OnDeck offers short-term loans for small businesses when they see a viable future based on the budget plan of your photography business. OnDeck also tailors their loans to meet your specific photography business loans needs.