Whether you are a part-time freelance writer trying to make some extra money in your spare time or you want to make a living from your freelance writing projects, there are often times when you need funding to make these projects a reality.
There are a variety of funding options for freelance writers, depending on the type of project they are working on. Some options are better for those who need capital to start and maintain a business, while others work best for creative projects that require a one-time funding source. Below are four funding options available to freelance writers, along with some information on when and how to pursue them.
Funding options for freelance writers
1. Apply for writer’s grants
A number of organizations offer grants for specific types of writers or writing projects. Grants are basically free money that is given by an organization to cover expenses based on the stipulations of the grant. Some grants are for continuing education or conference attendance, while others fund projects by authors with a certain background and characteristics or projects with a specific focus.
The downside to grants is that they are not a source of ongoing funding for those who want to start a full-time freelancing business. As with any other situation that involves multiple parties competing for something with limited capabilities, there is often stiff competition.
Finding grants that you are eligible for may also be difficult, but it is certainly not impossible. There are a number of online free resources that house grant databases and offer advice on both finding and applying for grants.
2. Crowdfund specific projects
Crowdfunding isn’t just for wacky inventions or non-profit initiatives. This platform can also be an excellent way to fund your creative writing projects. Crowdfunding is a way to raise money for a project or venture by collecting smaller amounts of money from people who are interested in your idea. This can be friends, family, investors, or others who like what you are proposing and want to see it happen.
Much like grants, crowdfunding is not the best avenue if you are trying to build a full-time business with your writing. However, it can be effective for smaller projects that require some funding to complete.
Popular crowdfunding platform, Kickstarter has categories for publishing and journalism. There are also unique crowdfunding platforms like Beacon that are designed to fund journalists who need funding for specific projects.
3. Obtain a small business loan from the bank
As with other types of small businesses, freelance writers have the option to get a small business loan from the bank. This funding can be used to pay for any expenses involved with start-up, ongoing, or expansion costs. Business bank credit cards are an additional option for those who need an ongoing line of credit for business expenses.
While bank loans can be a great option for new business owners, they are not always a good fit for freelance writers. Statistics show that a small business is less likely to get a traditional bank loan if they have been in business for fewer than 2 years and need less than $250,000. This means that a personal loan from the bank might be a more practical option for self-employed freelance writers who need funding to make their business a full-time job.
4. Get a business line of credit online
Unlike a bank loan, a business line of credit may work better for those who need infusions of capital over a period of time versus for one large expense. Most freelance writers do not have a lot of overhead, especially if they are working from a home office. This means that most borrowers who are freelance writers only need small amounts of capital to start and maintain their business.
The online business line of credit can also be more convenient than other funding sources as there is less time spent waiting for an approval. Further, once you are approved for a business line of credit, the money is instantly transferred to your bank or PayPal account.
A line of credit is certainly a great option for freelance writers who want to start or grow their full-time writing business, but it may not be ideal for those who are working on a one-time project. Also, as with any other loan, the line of credit must be paid back. It is therefore essential to consider all of your options prior to selecting a source of funding for your freelance writing endeavors.
There are pros and cons to each source of funding, but the good news is that there is money out there just waiting to help you make your freelance writing dreams come true. As you are researching and deciding on the best option for you, consider what your goals are and how much funding you need to ensure you make a decision that will help you achieve all of your freelance goals.