Types of Acting Studio Business Financing Options
Whether you have bad credit, good credit, or something in-between, there are many kinds of financing available to your studio. Here are some.
Unsecured Line of Credit
A secured credit line is a good option for virtually all acting studios, but to qualify for this kind of loan, it needs to have plenty of B2B invoices. To secure this loan, your business will need these invoices to offer up as collateral. Conversely, with an unsecured credit line, the funding will almost solely be based on your personal credit. Besides, a personal line of credit (LOC) will not need using personal or business assets as collateral in order to be funded. With this kind of LOC, you, being the owner, would be able to access financing when you need the funds, and would only need to pay interest on that amount which you draw on the line.
Merchant Cash Advance
Merchant cash advances (MCAs) are a form of financing which involves a business selling a percentage of its future invoices to another company to access immediate business cash. An MCA is perfect for nonprofit owners having bad credit, who cannot qualify for different kinds of alternative financing.