If you think photography goes beyond selfies, your aesthetic sense appeals to the alluring beauty and urge you to take out your iPhone or Pentax to capture the enticing moment to its best, you have a knack for photography. Making money by doing things that you are passionate about – it does not get better than this! With significant investment to get a hold of the basics, you can be a professional photographer. Funds for the investment can come from traditional banks, business credit cards, friends & family and alternative small business loans. Among these funding options, the ideal way to finance a photography business is through small business loans.
From business registration to gear, and along with other essentials, approximately it costs around $25,000. This figure doesn’t include the rent of the place, bills, and payroll of your employees. If your piggy bank is empty, then applying for a small business loan to set up something you are passionate about – photography business – is not a poor choice.
It takes more than taking a camera out of your bag, to run a photography business professionally you need a strategic business plan, social media platforms to market your talent, an official website so that people can contact you, and most importantly fancy camera, lightning, printers and much more.
Following small business loans can help you land in the photography business with the bang:
- Business Line of Credit
- Equipment Financing
- Short or long-term loan
- Merchant Cash Advance
Read the following points to understand how to manipulate a wide range of small business loans to finance your business.
- Term loans for business planning and initial steps
Design a business plan, make a list of all the equipment you need, devise a marketing and advertising campaign, and think about the accounting element of your business. Will you be taking care of all the domains by yourself? Or will you hire professionals for respective fields? If you think you can’t market your services in the right away, hiring a social media manager is the best course of action. Likewise, if you think you can’t enter the number and manage the cash flow, hiring an accountant and a financial manager is a good choice. You can’t just keep on taking free photographs of your employees as a consideration for their services; you have to pay them. A term loan is the best funding option to carry out these tasks. It offers a loan amount up to $5 million. Most importantly, its terms can go up to 35 years giving you an ample period to run a profitable business.
With 5 million in hand, you can easily carry out the initial tasks. For example, employees’ hiring and training, and brand marketing consume a massive amount of money. With extra cash flow, you can pick and choose options as you please.
Lastly, does your business plan include a business registration fee? Spare $500 to $1,500 from the term loan and register your business under proper business structure in your jurisdiction and run an official business. Now that you have the money to register your business, pay the rent, and pay the salaries of your hopefully hardworking employees, let’s move on to the financing of important gadgets used in the photography.
- Equipment Financing for Photography Gear
Taking a mental picture is all good but not if you are running a photography business. To make real money you must have real gadgets and to stay ahead of your rivals you need the fanciest one as well. Have a look at the following prices:
- Camera: $500 – $8,000
- Lens: $250 – $3,000
- Backdrops & Lighting: $200 – $800
- Professional Computer Setup: $1,500 – $2,000
If you don’t have this much money, then at these high prices can be disturbing. Take help from Equipment Loans or Equipment Financing. When a business owner is applying for an equipment loan, the lender offers money to purchase the equipment, in this case; it can be a camera, lens, lightning or a computer. The borrower will have complete ownership of the purchased machine. If you plan on changing your equipment, again and again, you should apply for Equipment Leasing. Leasing is a bit different from financing, here the borrower pays the fee to borrow the equipment and once the borrower has made all the payments, the borrower can lease a better or recent machine. When small business loan, especially equipment financing is there to help you out, lack of money can’t stop you from running a photography business.
Now that professional gear financing is all sorted out, let us move on the coverage of other expenses.
- Business Line of Credit and rest of the expenditures
What is the next step after taking pictures? Editing. If you need the best editing software, you need to spend a couple of bucks. Before your photography business starts to generate enough money, a business line of credit can help you cover the subscription cost. A business line of credit works like a business credit card. You only pay interest on the very amount of cash withdrawn. And once the borrower pays the amount, the lender charges the account to its original amount. For example, if you need to do a photo shoot and you need a couple of assistants and volunteers, to cover the salaries of those assistants, a business line of credit is an ideal funding option. With extra cash on hands, you can even do a couple of free shots just to make a name in the market. Dip into the pool of funds, and spend wherever you please.
If you are having a large number of clients who pay via credit cards, then a Merchant Cash Advance would be a considerable funding option for this business as well. Cash Advance needs transactions of at least $8,000; the lenders offer cash advance in exchange for future revenue generation via credit card sales. It is an expensive funding option.
Carefully evaluate all the funding options, apply for small business loans and use the flow of money to keep improving the aesthetic by your photography business. Head over to the official website of the Merchant advisors and apply away. To stay up to date, follow us on Twitter and Facebook (@Onlinecheck). If you have any question, feel free to call us on our toll-free number at (833) 827-4412, our loyal and keen financial advisor will answer your every question and guide you throughout the way.