Photography Business Loans & Financing

Can a photography business obtain financing?

Any business owner can obtain business financing if they meet the lender’s qualifications. 

In general, lenders for business loans want to see that applicants have a good idea of their business expenses and profit expectations, a written business plan, and a decent credit score.

Each lender will have their own qualifications, requirements, loan terms, interest rates, and loan fees – so be sure to shop around in order to find the best possible deal for your business.

Camera equipment and other start-up costs can be expensive, and a small business loan can be the perfect way to help entrepreneurs start the photography business of their dreams.

How do you finance a photography based business?

To finance your photography business, you will need to find a small business loan from a bank, credit union, or online lender. Many business owners prefer loans that are backed by the Small Business Administration. SBA loans typically offer better interest rates, lower fees, lower down payments, and more lenient loan requirements than other types of small business loans.

However, online lenders may have the best deals with the quickest access to financing due to their lower overhead costs and desire to remain competitive with big banks and credit unions.

Business loan applicants should research a variety of loan options before deciding and consider getting prequalified from one or more lenders before completing an official loan application.

Types of photography business financing options

When you are ready to start or expand your photography business, you will have several different financing options for your business expenses:

• Online business lenders: There are a variety of online lenders that are popping up in increasing numbers to offer small business loans. The major advantage of this type of financing is that both the online application process and the underwriting process are typically quick and easy. You should not have to wait weeks for a loan decision, and interest rates are typically fairly competitive. 
• Banks & Credit Unions – Whether you select an SBA-backed loan offered by a partner lender, or simply wish to utilize the loan offerings from your local financial institution, both banks and credit unions offer some of the best loan options for business owners.
• Merchant cash advance: As another alternative to a small business loan, photography businesses who need short-term financing can use a merchant cash advance to borrow against future earnings. Advantages include no need for collateral, a down payment, or a perfect credit score. On the other hand, downsides include high interest rates and high monthly payments.
• Line of credit: Whether you use credit cards, or a home equity line of credit, utilizing credit provides business owners another option to taking out a loan. Some consumers prefer the flexibility of an open line of credit vs. the lump sum of an installment loan. 

What is the cost to open a photography business?

While start-up costs can vary widely based on a variety of factors including equipment purchases, staffing needs, and geographical location – generally it costs several thousand dollars to start a small business like a photography business.

As mentioned above, the amount that you need to borrow for your photography business will depend on a variety of factors including whether or not you need a studio and what type of photography you expect to do. A basic photography business with 1 camera and 1 lens can be started for just a few thousand dollars, while starting an entire photography studio will run your start-up costs much higher. According to Business News Daily, the average amount a new business owner should budget to start their photography business is approximately $10,000. 

But no matter how much you need to borrow; you should be able to find a lender that is willing to finance your small business dreams.

Considerations when starting a photography business

When starting a photography business, there are a few different considerations for business owners to keep in mind. Starting any new business is a risk, and most entrepreneurs don’t have the funds upfront to cover all of the necessary start-up expenses. Luckily, taking out a small business loan provides the perfect opportunity for entrepreneurs to cover their expenses while spreading out the repayment of the loan over a period of time. To determine how much you will need to borrow, you will have to ask yourself a few questions about your business plan:

Will you be a mobile photographer who shoots on location, or will you need a studio? Will you do family portrait sessions or weddings and events that require hiring a second shooter? What type of camera, lens, backdrops, props, and other equipment purchases will you need to make?

Having a detailed business plan complete with financial projections will help you get a better idea of how much you will need to borrow to start or expand your photography business. 

Lenders will also most likely ask you for this information when you apply for a business loan.

How much can I borrow for my photography business?

As mentioned above, the average expected cost to start a photography business is $10,000.

In general, small business loans tend to have very generous loan limits, with available loans reaching even into the millions. On the other hand, microloans are available that give applicants access to short-term loans in amounts of less than $10,000. Business owners can expect to borrow an average of $60,000 depending on their financials, business plan, and credit history.

Are PPP loans available for photography businesses?

The Paycheck Protection Program (PPP) was designed to help small businesses cover the costs of payroll and operational costs, and the funds received are completely forgivable if your business and business expenses meet specific criteria. PPP loans are available for a variety of entrepreneurs and business owners, including the owners of photography businesses. 

Photographers can use PPP funds for staffing costs, rent and utilities, mortgage interest, and interest on other debts. When used on qualifying expenses, the funds do not need to be repaid.

Tips for choosing a photography business loan right for you

To choose the type of business loan that is best for you and your photography business, there are a few factors to keep in mind. You will want to consider how much money you need to borrow, what your current credit score is, how fast you need the funds, whether or not you need continuing support (such as from the SBA), and how much time you need to repay the loan proceeds. You will want to compare interest rates, loan fees, and other loan terms before making a final decision. Many business owners choose to go with SBA-backed loans for the best deals and best access to small business financing, but these loan programs are not your only option. Online lenders are increasingly offering competitive rates and terms with fast funding.

How do I qualify for photography business financing?

In order to qualify for small business financing for your photography business, you will need to meet the qualifications and application requirements set forth by your lender. In general, this consists of a good credit score, decent financial projections, and a solid business plan. Some lenders may want to see that you have relevant industry experience and a general idea of how you plan to spend the loan proceeds.

How fast can I get funding for my photography business?

The fastest option for obtaining financing for any business is usually going to be found from online lenders. PrimeRates is a lending platform that can expedite the business loan process. Within minutes you can find the loan that is just right for you - with no impact to your credit score. 

How to get a photography business loan

To get a business loan for your photography business, the first step is to shop around and decide which loan program and which lender you want to apply through. With a variety of financing options out there from SBA loans to microloans, it pays to do your research and even get prequalified from a few different lenders before applying. Landing a loan with the best interest rate can save your business thousands of dollars over the lifetime of the loan – money that can be better spent going back into your business!

Wrapping up

Be sure to thoroughly compare the rates and terms from several different lenders before you make your final loan product selection. You may have more options available to choose from than you think. To simplify the process, visit PrimeRates to fast track the business loan process. With access to business loans up to $500,000, PrimeRates is a top-rated lending platform that can make finding the best business loan offer a breeze. 

Compare business loan offers with no impact to your credit score. . . visit PrimeRates today!