Photography Business Loans: Best Options to Consider in 2024

It can be difficult for professional photographers to find funding through traditional banks and credit unions. Like other small business owners, many professional photographers net relatively small monthly revenue. So where do you turn when you need to purchase new photography equipment, build a studio, or pay for unexpected expenses? 

The good news is there are plenty of alternative small business lenders with more lenient requirements to help you finance your photography business. 

In this review, we highlight the terms, rates and fees of each lender and explain what makes them a good option. We also share potential downsides of each lender, and provide a rating methodology you can use to select the best option for your needs.

Best Photography Business Loans for 2024 - Full Overview

Below, our experts overview some of the best lenders for photography business loans and the financial products they provide.

How to Choose the Best Photography Businesses Loan

Here are the factors you should take into consideration when comparing loans; these are also the criteria our experts have used when providing recommendations in this guide.

• Loan Features: The most important factor to consider is the loan features including loan amounts, how long you have to repay the loan, and repayment options (monthly, weekly, daily).
• Application Process: Take into account the invasiveness of the application, how difficult it is to complete, and how quickly you receive the funds. Check whether the lender conducts a hard credit pull that will reduce your credit score or a soft credit pull that has no effect.
• Interest Rates and Fees: Shop around to find the most competitive annual percentage rates (APRs). Also check whether the lender charges loan origination, maintenance, or prepayment fees, as these can add up quickly.
• Qualification Process: Each lender has its own set of qualifications. Check to make sure that you meet the minimum credit score, annual revenue, and business history requirements.
• Customer Support: Check to make sure they offer multi-channel customer service support with access to a live representative to help with photography financing.
• Online User Reviews: You can also find vital information about the lender through independent review sites like Trustpilot.
• Perks and Bonuses: Lenders may also offer additional bonuses such as payment flexibility, advanced technology, and transparency about rates and fees

What Are the Costs of Running a Photography Business?

As you make plans to open your photography business, there are several expenses you need to keep in mind. Some of the most common include:

• Cameras: Of course, you’ll need a variety of camera equipment to get your business started. While you may have a camera or two already on hand, you should assess how many cameras you’ll need to run a successful photography business. Financing a camera can run you anywhere from $1,250 to $8,000.
• Lenses: To take the best pictures, you’ll also need access to a variety of lenses, which can cost around $950 or more per lens.
• Lighting: To make sure your subjects are well-lit, you’ll need camera flashes, reflectors, and other lighting accessories; these will likely cost you approximately $300 or more.
• Backdrops: If you plan on taking studio portraits, backdrops are a must. These can cost you anywhere from $40 to $750 depending on the material, manufacturer, and type you choose.
• Computers and Software: You’ll need access to at least one work computer plus software to edit the photos you take. A computer will likely run you $1,300 with software costing at least $250 per year.
• Transportation: Though its often overlooked when calculating expenses, you shouldn’t forget to add in how much it costs for you to drive to and from events and photoshoot locations, which will vary depending on mileage.
• Rent: Another expense to include is rent for your studio or office, which can cost anywhere from $850 to $5,000 per month based on the size of the space and your location.

You’ll also need to factor in occasional costs, like when you need to replace or repair equipment. It’s recommended that you draw up a business plan detailing each of these costs, so you know what expenses to expect as your company grows.

Types of Loans Available to Photography Business Owners

Professional photographers have access to various types of loans. Some of the most common include:

Term Loans: These are a standard financial product offered by many banks, credit unions, and online lenders. The terms and loan amounts vary widely as do the interest rates and accepted loan uses, which makes it easy for photographers to find a term loan that matches their needs.

Business Line of Credit: When you open a line of credit, you’re given access to a fixed amount of capital that can be used any time your business needs a quick injection of cash. These are great for covering unexpected expenses or making ends meet when bookings are limited.

Equipment Financing: While other loans can be applied to practically any business expense, these are for one purpose only: to finance your photography equipment. However, the definition of equipment is fairly broad. Equipment financing loans can be used to purchase cameras, lenses, lighting equipment, backdrops, camera bags, and even computers for your business.

Business Expansion Loans: The purpose of a business expansion loan is to provide you with the capital you need to grow your business. For example, this loan can be used to lease a new space for your photography studio, hire personnel to assist at events, or purchase new equipment.

SBA Loans: These business loans are backed by the Small Business Administration and can be used in a variety of ways. They’re a popular option because they offer low APRs and long repayment periods, but they’re often difficult to qualify for.

How to Use a Photography Business Loan?

There’s a variety of photography financing options available on the market. Though loan purpose may vary by lender, you can often use borrowed funds on:

• Photography Equipment: Loans can be used to purchase photography gear including cameras, flashes, filters, reflectors, speed lights, backdrops, props, and tripods.
• Advertising: Borrowed funds can also be applied toward advertising costs. For example, you can use loans to pay for a professional website or hire a marketing firm to advertise your services through radio, newspaper, and social media.
• Continuing Education: If you want to improve your photography skills by taking a class or two, loans can be used to cover the cost of education.
• Studio or Office Space: Some loans can also be used to help you secure and update space for a photography studio or office. For example, you can use borrowed capital to renovate your recently acquired office space to transform it into a photography studio.
• Office Equipment: Loans can be used to cover the cost of any office equipment or other supplies you may need to buy. This includes computers, office furniture, a photo printer, business cards, telephones, and external hard drives for storing photos
• Day-to-Day Expenses: You can also use loans to cover the day-to-day expenses of running a business. For example, if you find you’re not getting many bookings during the winter, you can take out a loan to help make ends meet.

How to Qualify for a Photography Business Loan?

One of the biggest concerns photographers have when searching for business loans is “Will I qualify?” Thankfully, you can increase your chances of success by following the tips below:

• Have a Clear Purpose for the Loan
• Determine How Much You Want to Borrow
• Know Your Personal Credit Score
• Gather the Necessary InformationGather the Necessary Information
• Be Selective When Applying for Loans

Conclusion

Running your own photography business is an exciting venture; you not only have the chance to connect with people, but you also get to capture some of their most important moments in life. But being a business owner isn’t always easy; you may need to take out loans to help your photography business grow and thrive. Thankfully, there are many options for photography financing available on the market; all you have to do is compare the various options to find one that suits your needs.

*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.