How to Finance DJ Equipment

by Maggie Gebremichael ; Updated September 26, 2017
Disc jockey with turntables and headphones

DJs work at several venues, such as bars, clubs, wedding receptions, birthdays and general parties. Although you can start a DJ business with limited supplies, you might need financing in order to expand. DJ equipment includes music, stands, speakers, turntables, microphones, controllers and effect lighting. DJ equipment costs can add up quickly, even if you purchase used products.

Select equipment you need and estimate the cost (browse websites like musiciansbuyline.com/dj.html). Compare the difference in purchasing new versus used equipment. You might find cheap used equipment, but you might prefer to buy new to receive manufacturer warranties.

Analyze your current revenue and expenses. If you are a new start-up, create a business plan with monthly and annual sales projections. For instance, you might charge $450 to entertain for four hours and plan to work three parties a week. However, you might spend $50 a week to handle advertising expenses or offer $30 referral fees.

Apply for a business loan at a local bank or credit union. Most lenders will review your personal credit to determine if you are a significant risk. If needed, clean up your credit history by paying or settling outstanding debts.

Contact the DJ equipment seller directly about financing options. Some vendors offer in-house financing or provide leasing options (lease to own the equipment). If you fail to pay the agreed terms, the equipment probably will be seized or repossessed.

Approach a local U.S. Small Business Administration office (Small Business Development Centers) for free help in preparing a business plan or finding financing sources. Review your business model and determine if you should finance or save and purchase equipment as you can afford it.


  • You still are financing by using a credit card to purchase the equipment or borrowing money from family members and friends. Carefully review the interest rate. For instance, you might receive a loan to buy DJ equipment worth $10,000 with an interest rate of more than 15 percent.

About the Author

Maggie Gebremichael has been a freelance writer since 2002. She speaks Spanish fluently and resides in Texas. When she is not writing articles for eHow.com, Gebremichael loves to travel internationally and learn about different cultures. She obtained an undergraduate degree with a focus on anthropology and business from the University of Texas and enjoys writing about her various interests.

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