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Getting a New Business Bank Loan

By: J.A.J Aaronson - Updated: 14 Oct 2012 | comments*Discuss
New Business Loan Bank Loan Photography

For any start up business, securing sufficient funding is an immediate and potentially difficult challenge; indeed, many businesses never clear this first hurdle.

When establishing a photography business there are number of significant set-up costs; you will need to buy equipment, you may require premises, and you will almost certainly need to purchase insurance of some sort (which is covered in a separate article elsewhere on this site).

These all represent significant outlays and, unless you have savings or existing available capital, you are likely to require third party funding. In order to secure this, you may look for a new business loan.


There are a number of places in which you may secure a new business loan, but the most common targets are high street banks. Most banks have business departments; indeed, you may already have a business account with such an organisation.

In the current climate, however, banks are more reticent to lend. As a result, their criteria for success have become more stringent. Regardless of the economic climate, however, there are a number of requirements that most, if not all, lenders will need to see fulfilled in order for your photography start up business to be considered for a bank loan.

In the first instance, most lenders will want to see that you are putting up a portion of the capital yourself. The demonstration that you are accepting some personal financial risk acts as proof to lenders that you are serious about the project and that you are willing to work for its success.

New business loans are not easy to come by, and most lenders will be happier to back projects that are financed from multiple sources. Indeed, many banks will only consider offering a loan to your photography business if you will match the amount that they offer.

Business Plans

A comprehensive business plan is a necessity for any start up business. This is particularly important, however, for those seeking a new business loan. This document should give detailed information regarding your cashflow projections, in order to demonstrate to the potential lender that you will be able to make the necessary repayments.

Your business plan should also provide details regarding contingency plans; lenders will wish to see how you will pay back the loan if your photography business does not progress as projected. Further information regarding writing a business plan is available in another article elsewhere on this site.

Finally, lenders will always be happier to shell out if you can provide some security against their loan. This might take the form of buildings or equipment, and does not necessarily have to be owned by the business – the security offered could be made up of your own personal assets. You should remember, however, that you risk losing these assets if you cannot pay back the loan.

Your new business loan agreement will have a significant impact on the financial future of your photography business. As such, it is important that you fully understand the terms and are confident that you are receiving a good deal. In order to ensure that this happens, you may consider contacting a loan broker who will be able to give you personal advice and help negotiate the contract on your behalf.

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