Financing

 

what are my options for financing?

Most people will combine some of these options when starting a franchise:

  • Cash savings: Whether you fund the entire investment with cash or simply use your liquidity for a down payment, cash is always king.

  • SBA Loan: The U.S. Small Business Administration (SBA) works with lenders to provide loans to small businesses. By reducing risk for lenders, the SBA makes it easier for them to access capital and, in turn, easier for small businesses to get loans.

  • HELOC:  A home equity line of credit, or HELOC, is typically in the form of a second mortgage on your primary residence, using equity in your home to invest in your business. 

  • 401K/IRA Rollover: Also known as ROBS (Rollover as Business Start Up). You can withdraw money to start a business from your 401(k), IRA, 403(b), or other qualified retirement account without penalty, upfront taxes, or debt. There are several high-quality national providers that work exclusively in franchising. Learn more.

When and where do I start?

Funding is one of the most important considerations when buying a franchise. I work with trusted third-party funding partners that offer a comprehensive suite of options for you to consider. These companies help entrepreneurs launch their dreams, using proven and innovative strategies to maximize opportunity while minimizing risk. 

As when you’re considering the purchase of a house, it’s best to get pre-qualified for financing early in the process when considering buying a business. Here are three reasons to get pre-qualified now:

  • Determine fundability. In addition to finding out whether you qualify for funding, you can also determine which funding methods would work best for you. 

  • Compare financing options. By working with a franchise funding expert, you can easily see how each financing option differs in terms of monthly repayments, interest rates, etc.

  • Nail down a business budget. Let the funding expert calculate your maximum funding amount. That way you can narrow down your franchise search to only look at opportunities that fall within your financial parameters.

who are your trusted partners?

How do I pre-qualify for funding?

It’s wise to speak with an experienced franchise funding expert to fully understand your options. I work with two of the most experienced and trusted experts in the industry: FranFund and Benetrends.

Fill out the form below to see how much funding you may be eligible for.