Complete Guide to Radio Station Financing

In the U.S. alone, radio reaches 93% of adults every week, according to data from Nielsen. With more than 15,500 radio stations across the country, stations are competing for advertisers as well as listeners as they try to promote their brand and expand their reach. 

Keeping up in modern radio requires the right technology, hard-working staff, exciting promotions and the space to facilitate all of these things. It can be a costly endeavor. But there are options if you’re experiencing cash flow shortages and need radio station financing.

In the entertainment industry, the need to capitalize on a time-sensitive opportunity or manage through a dip in ad sales could arise at any moment. Oftentimes, it requires more capital than you have available. Here are a few instances when you might consider radio station financing.

Cover Rental Payments

Commercial space isn’t free. If you’re experiencing a dip in ad sales and need help covering the costs of your studio rental, a small business loan could help. Consider that renting space to host 1 hour of podcasting could cost $100. Multiply that a few times each week, then calculate monthly fees, and you get an idea.

Hire New Talent

Do you want to hire a stellar advertising salesperson or a new broadcaster? According to the most recent salary data provided by the U.S. Bureau of Labor Statistics, announcers earn a median salary of $39,700. Additionally, radio advertising salespeople earn an average of $45,880, according to Salary.com.

Conduct Listener Research

Perhaps you’d like to invest money to learn more about your audience. Find out who’s listening to your broadcast so you can tailor your programming to them. Also, learn what ads are working and which ones aren’t or if you’re running too many of them. A little bit of listener research can go a long way toward facilitating sales and fine-tuning your programming.

Pay for Equipment and Industry Fees

Freeing up the capital to afford new equipment just isn’t feasible sometimes. When you need to buy or replace digital mixers, transmitters, computers and professional microphones, the costs can add up. Also, consider licensing costs and royalties you might have to pay to run your radio station.

Commercial radio stations earn most of their money from selling ad space, while community-based stations rely more on listener contributions and subsidies. Even then, sometimes you need additional funds to maintain operations. When that happens, radio stations can turn to business financing.

Short-Term Loan

If your financial needs are temporary, consider applying for a loan with a term between 3-18 months. A short-term loan could be just the right funding opportunity if you need help maintaining operating expenses one month. This type of radio station financing is meant to be repaid quickly and often has daily or weekly payment requirements.

Business Term Loan

If you have a costly expense that would be better served with longer repayment terms, consider a term loan. Repayment terms are in years, so you have more time to pay off your debt. You could use a term loan to refinance existing debt, cover a new hire’s salary, invest in new radio programs and more.

SBA Loan

These loans are partially guaranteed by the U.S. Small Business Administration (SBA). If you’ve been denied a conventional bank loan but are searching for competitive interest rates and repayment terms, consider an SBA loan. Use this type of financing to increase your working capital, expand your broadcast station company and more.

Business Line of Credit

If you want access to capital at a moment’s notice, consider a business line of credit. It works similarly to a credit card. Apply for one, get approved for a certain limit. Use it when you need it, and only get charged when you use it. As you pay down the amount you borrowed, your credit line is restored. Use funds for short-term needs, such as monthly bills and payroll.

Equipment Loan

If you need pricey equipment, consider an equipment loan. Typically, with an equipment loan, the machinery you’re purchasing serves as collateral for your loan. In some cases, you could be approved for the full value of the equipment you’re buying.

When you’re searching for financing, you can feel overwhelmed with the many options and ads out there. However, you don’t have to be. Here’s an overview of the most popular lenders in today’s financing market.

Conventional Lenders

Conventional lenders, such as banks, are typically able to offer competitive interest rates and terms. However, the process to apply, get approved and funded can take time. Often, that’s time companies just don’t have. Not to mention credit score and collateral requirements can be difficult to meet.

Alternative Lenders

Alternative lenders are now on the scene, competing with many banks and credit unions. They’re known to offer streamlined applications and faster, more accessible funding. In return, approved business owners will usually have shorter terms and more frequent payments.

With Fast Capital 360, you can apply for radio station financing if you meet the following qualifications:  

Minimum Requirements:   

• 500+ FICO score
• 6 months in business
• Annual revenue of $100,000+ 

What You’ll Need to Get Started:

• Basic information about your business and yourself 
• 6 most recent monthly bank statements

• What Our Customers Say

  “One of the biggest problems [with] being an entertainer is the constant ups and downs of the business. We’re like tobacco farmers. We have these cash droughts…and Fast Capital [360] alleviated that in my business.”

  – Fast Capital 360 customer Kenny Mann Jr., musician with Liquid Pleasure Band

  

At Fast Capital 360, we’re ready to help you get the radio station financing you need. Benefit from the following:

Quick and Easy Application

In just a few minutes, submit your application online to find out what you qualify for.

Multiple Offers

Your single application could bring offers from more than one of our nationwide lending partners, giving you options to compare.

Expert Advice 

A Fast Capital 360 Business Advisor will reach out to go over your offers with you, so you can decide on an option that works best for your needs.