• 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

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

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

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

Pros

✔ Flexible

✔ Lower rates

✔ Easier approval

Cons

✘ Relationship strain

✘ Should always be documented legally

Repayment is a percentage of monthly revenue until a predetermined amount is repaid. Usually offered through fintech companies and not traditional banks.

Pros

✔ Payments fluctuate with revenue

✔ No equity

Cons

✘ Higher overall cost

✘ Can reduce cash flow during busy periods

Borrow against personal home equity. (Consultant your accountant first)

Pros

✔ Lower rates

✔ Larger borrowing capacity

Cons

✘ Personal residence at risk

✘ Blurs business and personal finances

Use certain retirement funds to invest in your business without early withdrawal penalties.

Pros

✔ No loan payments

✔ No interest

Cons

✘ Complex

✘ Significant retirement risk

✘ Requires specialized legal and tax guidance.

✘ May be subject to early withdrawal fees