What's the scoop on financing a franchise? What resources are out there? Are some franchises easier to get financing than others?
Financing a Franchise
There are many ways to finance a franchise. I've read an article in the trade news section of Blue MauMau, "Where Can I Find Funds to Buy a Franchise " on that very topic. The resources to get funding are:
- Some rare franchisors will lend funds to help you start their franchise
- Your local bank or national and regional banks that have franchise loans
- Equity loan on your house
- Creatively tapping into retirement funds to minimize penalties
- Angel capital
- Venture fund capital
- If you are turned down by a bank, then go to the Small Business Administration
Now here is the thing. Franchises are easier to get funding for. Banks and lending institutions tend to know them better and are more comfortable with them compared to if you had some business concept by yourself and wanted to get a loan.
For example, the SBA has a franchise registry, which is a streamline of franchise approval. These are franchises that they deal with, have lower failure rates, and whom the SBA likes lending for. I once heard an SBA loan officer say that once she sees a Subway application, the approval process is almost a no-brainer because she receives so many of them, they are on the franchise registry, and that she knows the company in her area so well. (In other words, she knows how well the lendees pay on their loans and don't go under.)
The Franchise Registry is a small way to access what the SBA knows, that is what franchise owners in what franchise chains tend to not default on their loans the best. That's very valuable information if you are about to buy into a franchise concept. I wish they would fully disclose such information, but given what's available now, the Franchise Registry is one way to gauge the success of a franchise chain.
New funding opportunity for franchise owners
I recently helped out several Subway restaurant owners through our new funding opportunity specifically catered to franchise restaurants and wanted to reach out to all of you. For a limited time, I can approve your franchise restaurants with funding up to 200% of average monthly credit card sales volume. There is no personal guanrantee nor collateral of business assets required for our funding and these are unrestricted funds - meaning you can use it for any purposes you choose.
Since 2006, our group has funded over 22,000 businesses with $450 million in funding. My clients have used our funding to open new locations, update and expand their businesses, buy out partners, launch aggressive advertising campaigns, fund equipment purchases, add new hires, provide working capital for slow periods, etc – all of which helped grow their businesses. We approve 90% of qualifying funding requests.
Please contact me for a free consultation. www.FundingBusinessGrowth.com
Thank you and looking forward to helping your business expand!!
spam spam spam spam
"Since 2006, our group has funded over 22,000 businesses with $450 million in funding. "
So that's like, $20,000 per customer. Not like yer gonna open another store with that.
Just another "we give you an advance on your credit card billings" scheme. Ever try to get an APR out of these guys? We get cold-called on the phone by these outfits all the time. Not once would any of them ever tell me how much I would have to pay back for every $100k (or $10k or $100) borrowed. In fact some of them say "this is not a loan". What is it? "It's an advance". Be careful, be very very careful.