Doing music means having to spend money first to get your music out there, and by money, it means a lot. Success does not come in a snap that’s why you need to have a day job (see the article on the best day jobs for musicians here). But what if having a day job and even your savings are both not enough? Are you going to wait until forever to have the needed funds to start working on music?
With thousands of musicians waiting to be discovered, it is important that you compete in the best way possible for as we all know, only a few will be lucky enough to be known. But how can you possibly do that if you also have financial issues to worry about?
There are multiple options that are available on the market and one of the quickest ways to get funds is applying for a loan. But before deciding on getting one, check out the things that you need to do before submitting an application.
Decide on the amount that you need and how you can pay it back - It is very important to carefully decide on the amount that you need before applying for a loan. Research on the costs to help you realize your music. How much are the new musical instruments that you need for your band? Or the cost of the recording studio? You need to have these included in your business plan as you may have a hard time paying it back. You don’t want to get less than what you need as that may somehow defeat your purpose of having a loan or so much more that may cause you issues in the future.
Shop around - After deciding on the amount that you need and planning ways how to pay it back, now it’s time to shop around and look for the best source. You would consider a source that will give you the lowest interest rates and the best deal. Something that will not let you lose your creative control on the business. You only need funds, not something that will control how you should do your music (otherwise, you should have selected other resources). Carefully decide on the best available option.
Check out the interest rates - When opting for a loan, you will not only pay for the amount that you borrowed but your loan comes with interest rates. Meaning to say, you’ll have to pay more than what you borrowed. Getting the money that you need is not everything. You don’t want to end up doing music just to pay for what you borrowed. Some lenders charge high-interest rates so try to avoid them as much as you can. Loans with high-interest rates mean high monthly payments and take longer to be paid than those with lower interest rates.
Consider the length of Loan- If you don’t want to be stuck paying for your loan for a very long time, it is important that you consider this before submitting an application.
It is important to plan ahead before getting a loan application. Having it is a serious commitment that may ruin your finances in the future if not carefully thought of. Once you get your loan proceeds, consider the ways in spending it the right way. Learn the tips on spending your money on our next article!