The first question isn't "Can I get financing?" It's: What am I financing?

Different funding sources are designed for different needs.

Examples:

• Bridging delayed client payments

• Investing in growth

• Hiring staff

• Purchasing equipment

• Surviving an emergency

• Acquiring another business

• Expanding operations

Matching the financing to the purpose often saves thousands of dollars.

The content in this section is for informational purposes only. We strongly recommend seeking legal and tax advice from qualified professionals before making any decisions.

• Think of this like a business credit card without necessarily using a card.

• Borrow only what you need.

Best For

• Seasonal businesses

• Agencies waiting on invoices

• Unexpected expenses

Pros

✔ Flexible

✔ Interest only on funds used

✔ Great for cash flow

✔ Reusable

✔ Cash Flow

Cons

✘ Variable rates

✘ Can be reduced by lender

✘ Requires discipline

Best For

• Established businesses

• Expansion (office build-outs)

• Long-term investments

• Major purchases (i.e. property)

Pros

✔ Lowest interest rates

✔ Predictable monthly payments

Cons

✘ Difficult approval

✘ Often requires collateral

✔ Long repayment terms

✔ Builds banking relationship

✘ Requires financial statements

✘ Slow approval process

Small Business Administration loans are issued by banks but partially guaranteed by the government.

Types

• SBA 7(a) - The 7(a) loan program is SBA’s primary business loan program for providing financial assistance to small businesses.

• SBA Express - An SBA Express loan is a government-backed small business financing option under the that offers faster approval times by allowing lenders to use their own internal underwriting

• SBA 504 - Long-term, fixed rate financing of up to $5 million for major fixed assets.

• SBA Microloan - Smaller-size loans of up to $50,000 provided through SBA funding intermediaries.

Best For

• Growing businesses needing substantial capital.

Pros

✔ Lower down payments

✔ Longer repayment periods

✔ Lower interest

✔ Easier qualification than conventional loans

Cons

✘ Paperwork intensive

✘ Slower funding

✘ Personal guarantees often require

Best Uses

• Short-term expenses

• Travel

• Software

• Client entertainment

• Equipment under $10,000

Pros

✔ Immediate access

✔ Rewards

✔ Easy approval

✔ Builds business credit

Cons

✘ High interest

✘ Easy to overspend

✘ Can become long-term debt

A revolving credit line secured by receivables.

Pros

✔ Lower cost than factoring

✔ Flexible

Cons

✘ Requires quality receivables

A revolving credit line secured by receivables.

Non-repayable funding awarded by government agencies, foundations, or organizations to support specific projects or business development. Unlike loans, grants do not need to be paid back, but are often competitive and come with eligibility requirements and reporting obligations.

Sources

• Local governments

• Arts organizations

• Economic development agencies

• Women's business organizations

• Minority business programs

Pros

✔ No repayment

✔ No equity given up

Cons

✘ Competitive

✘ Time-consuming

✘ Restricted uses

A short-term financing solution in which a lender pays suppliers directly on behalf of a business to fulfill a confirmed client order. Once the client pays, the lender is repaid and the business receives the remaining balance minus fees. Useful for production companies managing large projects where supplier costs must be covered before client payment is received.A lender pays suppliers so a business can fulfill a confirmed customer order.

Best For

• Production companies

• Manufacturing

• Large commercial jobs

Pros

✔ Enables acceptance of larger projects

✔ Preserves working capital

Cons

✘ Expensive

✘ Works only with confirmed purchase order

Borrow against business assets such as receivables, inventory, or equipment.

Pros

✔ Larger borrowing capacity

✔ Lower rates than unsecured loans

Cons

✘ Assets serve as collateral

• Sell unpaid invoices to a factoring company.

• You receive cash immediately.

• The factor collects payment from your client.

Best For

• Large unpaid invoices

• Government contracts

• Corporate clients

Pros

✔ Fast cash

✔ No traditional loan

✔ Approval based on customer credit

Cons

✘ Expensive

✘ Customer knows you're factoring

✘ Fees reduce profit

• Different from factoring.

• You keep ownership of the invoice.

• The lender advances money against it.

Best For

• Agencies with reliable receivables.

Pros

✔ Customer never knows

✔ Better control

✔ Faster than bank loan

Cons

✘ Interest and fees

✘ Requires collectible invoices

• The lender purchases a portion of future sales.

• Repayment is automatically deducted daily or weekly.

Best For

• Generally considered a last resort.

AMA Perspective

Many small creative businesses use MCAs because they are easy to obtain—but they are among the most expensive forms of financing available. Fully understand the repayment structure and total cost before signing.

Pros

✔ Very fast approval

✔ Little documentation

✔ Poor credit often accepted

Cons

✘ Extremely expensive

✘ Daily withdrawals hurt cash flow

✘ Difficult to escape

✘ Can create debt spiral

Purchase equipment using the equipment itself as collateral.

Best For

• Computers

• Studios

• Photography gear

• Production equipment

• Vehicles

Pros

✔ Easier approval

✔ Preserves cash

✔ Fixed payments

Cons

✘ Limited use

✘ Equipment can be repossessed

✘ Can create debt spiral

An arrangement in which a vendor agrees to perform work upfront and accept payment at a later date or in installments, rather than requiring full payment upon completion. This can also take the form of a trade arrangement, where two parties exchange services in lieu of payment. Both approaches allow businesses to manage cash flow and move projects forward without immediate out-of-pocket costs.

Pros

✔ Interest-free if paid on time

✔ Improves cash flow

✔ No traditional loan

Cons

✘ Late fees

✘ Relationship risk

• Raise money from many supporters.

• Examples include donation-based, reward-based, or equity crowdfunding.

Pros

✔ Market validation

✔ Marketing exposure

✔ No debt (depending on model)

Cons

✘ Time intensive

✘ Campaign may fail

✘ Public visibility

Private individuals investing personal money.

Best For

• Scalable startups

• Not usually appropriate for traditional artist representation firms.

Pros

✔ Large funding

✔ Mentorship

✔ Connections

Cons

✘ Give up equity

✘ Shared decision-making

Private individuals investing personal money.

Best For

• Scalable startups

• Not usually appropriate for traditional artist representation firms.

Pros

✔ Large funding

✔ Mentorship

✔ Connections

Cons

✘ Give up equity

✘ Shared decision-making

• Meeting should be private and confidential

• Discuss their departure

• Communicate reason for employee’s departure: whether resignation, termination, or end of contract

• Offer employee opportunity to provide feedback on experience + company

• Ask open ended questions - reason for leaving, overall satisfaction, role in the company and ways they may want to see it improved for a future candidate

• Collect company property: Request employee return any laptops, access cards/keys, phones, or any other item issued during their employment

• Discuss any pending projects / tasks the employee should complete before departure. Set clean timelines for completion

• Finalize paperwork: Termination letters, Non-Disclosure agreements, and exit surveys (if applicable) should be signed and handed in to management

• Notify employee's of colleagues departure

• Responsibilities: Determine how employee's workload will be distributed among the remaining team or identify a replacement. Be clear about all changes to the team

• Information: Facilitate transfer of knowledge from departing employee to colleagues. Done through documentation, training sessions or job shadowing

• Process any final payments to employee (including accrued vacation or sick time)

• Update Records to reflect employee's departure; including their status in HR system and removing their access to company systems and facilities

• If Applicable - provide references for departing employee. Only if in line with company policies