Introduction To Franchise Financing
Franchise financing is a financing program where a lender is set-up to deal with the exact requirements of a franchise business. Majority of people have recently found that a franchise is the approach to get into business and after getting the quality franchise opportunity; there are some questions that arise; where to acquire the required working capital, cash for franchise financing and the royalty fees.
Franchise financing is important within the marketplace at the present time due to the fact that it can make a world of difference between prospective business owners having the money to invest into an established business and in the long run failing to benefit from what could have been the finest chance in their lives. Until currently, franchise financing was confined; however the increase in demand for franchises has directed to a foremost alternate. At present, you can find the appropriate financing from many sources; however to be able to get assistance from it, you have to understand where you can get it in first place.
Requirements For Franchise Financing
In most cases, it’s quite complicated to get a loan for a new or startup business, even though it is a franchise. Generally, you’ll need to have a good to excellent credit rating, 20% or more of down payment, and business management skills or related industry experience. It is also valuable to bring some of your resources as collateral with you when applying for financing.
Traditional Funding Sources
Bank loans that are unsecured by collateral are rather uncommon, even for people with excellent credit score. Other than getting a loan with a mortgage on your resources or other assets, be ready to be asked by the lender to put your personal money into the business that is normally about 20% of the amount required. Even with excellent business standings and valuable collateral, majority of bank loans to new franchisees take place when a borrower has established connection with the banking institution, or has previous association with the bank. If you are not interest in this type of loan, there is another way to get your business funded and that is U.S. Small Business Administration (SBA).
Alternative Funding Sources
Whether you are a single store or a multi-unit location looking for the expansion of your business or want to take your business to the next level, there are private lenders available in the market such as Merchant Advisors and Fundera which can help you with the required amount.
Business owners with successful businesses frequently speculate if they should franchise as an approach to amplify their business operations. As with any other business, franchising also has its perks and downsides. In case you’re looking to franchise your business, it is an excellent option to get started. There is no such thing that can measure the appropriateness of franchising, but knowing the pros and cons of it. And for that, you can get the help of a franchising expert so you can get a picture of franchise business.
Benefits Of Franchise Financing
- Completely unsecured funding up to $500,000
- Good credit is not a condition
- Quick funding process
- No personal guarantee needed
- 90% approval rate
- Get approved in just 1 hour or less!
- Dedicated account team to help each of your franchise brands
Whether you are looking to expand your business to other towns and cities, want to refinance your current locations, buy additional space or do renovation on the current location, Merchant Advisors can provide you with the financing solution with the intention to fulfill your franchise business requirements. Our financial experts can help you from consultation, pre-qualification, and loan programs, to loan approval and funding. So get the franchise financing you want and forget about the hassle of banks.