How to Apply for a Business Loan as an Event Planning Company

Starting and running an event planning business is exciting, but can come with its own set of financial challenges. Whether you're coordinating weddings, corporate events, or organizing large-scale festivals, these types of small businesses always have a need for upfront capital. From booking venues to purchasing decor, marketing services, or hiring temporary staff like caterers, the costs can really add up... often well before you see that final invoice paid.

That’s why having access to the right business financing is crucial. The good news? Funding for event planning companies is readily available, as long as you know where to look and how to qualify. Here’s everything you need to know about getting funding for an event planning company, what business owners need to know, and how to improve your chances of loan approval.

Why You May Need Funding for Event Planning Companies

Event planning is a high-pressure industry that demands flexibility, creativity, and perhaps most importantly cash flow. Not only do event management companies need to cover many upfront costs, but many businesses in the event planning industry are also forced to juggle inconsistent seasonal revenue or lengthy client repayment terms.

These can make it tough to cover ongoing operational costs or last-minute emergency expenses. Not to mention, if you plan to invest in any growth or expansion of your company, paying for everything from marketing strategies to new hires can mean a significant use of funds.

Some common reasons event planners may need business funding include things like:

• Booking venues and vendors in advance
• Hiring staff or contractors for large events
• Marketing strategies and client acquisition efforts
• Purchasing or leasing decor, equipment, or transportation
• Providing working capital through slow months with cash flow business loans

Whether you’re a solo planner or operate a growing agency, there will likely come a point when you need business funding to keep up with demand or smooth out revenue gaps.

Types of Business Funding for Event Planning Companies

When looking at all of the funding options for your event business, it's important to understand the types of financial support that are available and how each might meet your specific funding needs. Each type of loan has its advantages depending on the type of event business you own, how much you need to borrow, your credit profile, and even the age of your company.

Term Loans

One of the most common types of funding for event planning companies is a business term loan. This financing option provides you with an upfront lump sum, which you can use for a variety of expenses, then the loan is then repaid over time with fixed payments. These loans are available from a number of funding providers.

Term loans are great for larger investments like expanding your team or buying equipment. They’re also helpful if you have a large event with a lot of upfront expenses, but don’t have the capital on-hand to cover them.

Business Line of Credit

A business line of credit is a flexible, revolving credit account that allows you to borrow funds as needed, up to a set and predetermined limit. Unlike a term loan, you only get cash when you choose to make a withdrawal. You will also only pay interest on the amount you use.

Lines of credit are a great option for short-term or unexpected expenses, such as venue deposits, last-minute provider payments, or covering payroll during a slow month. For event planners dealing with seasonal cash flow or unpredictable client payments, a line of credit offers the convenience and adaptability to keep operations running smoothly.

SBA Loans

Government-backed loans offer lower interest rates, longer repayment terms, and larger loan amounts, making them one of the most affordable funding options for small businesses. Issued by approved lenders and partially guaranteed by the Small Business Administration (SBA), these loans are best suited for established event planning companies with strong credit scores. Some SBA loans are even available to non-profit companies.

SBA small business loan funds can be used for hiring, equipment purchases, marketing, or managing cash flow. However, the application process is notoriously detailed and time-consuming, requiring financial statements, tax returns, and a solid business plan. Approval can often take several weeks, too, so SBA loans are not an ideal option for startups, entrepreneurs with poor or limited credit, or urgent funding needs.

Merchant Cash Advances

A merchant cash advance (MCA) provides business owners with a lump sum of cash, which is repaid through a percentage of future credit or debit card sales. Repayments are made daily or weekly, tied to your transaction volume.

MCAs provide quick funding for event planning companies, often within a single day or two. MCAs are accessible even to new businesses or those with lower credit scores, making them appealing for covering urgent event expenses.

However, they come with high fees and interest, and the frequent repayments can strain cash flow. Because of the high cost, MCAs are best reserved for short-term emergencies when no other options are available.

Invoice Financing

Invoice financing is an ideal option for funding for event planning companies, especially those that find themselves regularly waiting on client payments. Invoice financing lets you take out a cash advance against a portion of the invoice total, using the unpaid invoice itself as collateral. Once your client pays their invoice, the lender deducts a small fee and releases the remaining funds.

This option is especially useful for event companies working with clients who have long payment terms. It provides faster access to cash without relying on your personal or business credit score, since approval depends more on your clients’ reliability.

Fundraising

Depending on your niche and what you need cash for, crowdfunding may be another option to consider for your business. With the help of platforms like Kickstarter and social media channels, you can promote your business’s cause and ask fans, friends, family, and other supporters for their sponsorship in the form of donations.

In many cases, businesses accept these donations in exchange for rewards like special events and gifts. However, unlike a loan, your business won’t actually owe a debt in exchange for this form of funding for your event planning company.

What Lenders Look For: Qualification Criteria

Getting approved for business funding as an event planning company takes more than a strong portfolio, or a calendar packed with client bookings. Lenders need to evaluate how much risk they’re taking by lending to you, and they use a standard set of criteria to do it.

As an event planning company, understanding what those factors are — and how you measure up — can make the difference between getting approved or getting passed over.

Credit History

One of the most important elements lenders will look at is your credit score. Both personal and business credit histories may be considered, especially if your business is newer or doesn’t have much credit history on its own.

A good credit history not only puts you into position to qualify for a loan, but may also unlock favorable loan terms, such as low-interest rates or government-backed SBA loans. You may still get approved with a low credit score, but it may only be for high-interest or alternative financing options.

Business History

Lenders will also want to see how long your business has been operating. The longer you’ve been in business, the higher the chance you’ll get approved for funding for your event planning company... and the better the offers you might receive.

If your event planning company is still in its first year, don’t worry. Some lenders will still work with newer businesses, especially if your revenue is strong or you can offer some form of collateral to secure the debt. You may be asked to provide recent bank statements, tax returns, and in some cases, a profit and loss statement (P&L) to show proof that your business has a steady cash flow.

Industry Risk

Event planning, while creative and rewarding, is often categorized as a moderate-risk industry. These businesses are impacted by external factors like seasonality, economic downturns, and client budgets. Still, lenders may be more confident in your business if you can show a diverse client base or partnerships, and a steady stream of projects that keep you busy year-round.

Final Thoughts

Qualifying for funding for your event planning company requires you to have more than just a vision and initiative: It takes preparation, planning, and choosing the right lender. While lenders evaluate things like revenue, time in business, and credit score, your ability to present your company in a financially-sound, organized, and professional manner is just as important.

Funding for event planning companies is available, and the right loan can be a powerful tool to help you grow, stabilize your cash flow, or expand into new markets without ever tapping into personal savings.

FAQs on Funding for Event Planning Companies

What types of funding for event planning companies are available?

You can choose from several different types of funding for event planning companies, including term loans, business lines of credit, SBA loans, merchant cash advances, invoice financing, and even crowdfunding. Each option can be used to cover different business needs, from upfront costs to managing seasonal cash flow or expanding.

Can new event planning businesses qualify for funding?

Funding is available for new event planning companies, but qualifying for it may be more challenging. Newer companies often have limited credit history and revenue, so lenders may require collateral or higher interest rates. Merchant cash advances, invoice financing, or funding companies that specialize in startups may be the most accessible options to consider.

What’s the best last-minute option for funding for event planning companies?

A business line of credit is a good choice for funding for event planning companies facing unexpected or emergency expenses. It offers the flexibility to withdraw only what you need and even helps you manage cash flow during peak seasons or when awaiting client payments. However, what is best will vary.

Are SBA loans available for funding for event planning companies?

SBA loans are available to event planning companies that meet certain criteria, including demonstrating strong credit, financial stability, and a solid business plan. These loans offer competitive rates but require more documentation and a longer approval time, so they are not the best option for small businesses facing immediate expenses.

How can I improve my chances of getting funding for my event planning company?

To increase your chance of getting approved, keep your financial records organized, maintain good personal and business credit, show steady revenue, and create a detailed business plan. Partnering with experienced funding companies can also help match you with the right lender or product.

Frequent searches leading to this page