Franchise Financing Information

Finding the right financing option can be a frustrating process without knowing your options.

To receive financing you must have good credit and debt that’s in control. Here are two valuable resources for you.

CLICK HERE TO RECEIVE A FREE CREDIT REPORT

CLICK HERE FOR INFORMATION ON REDUCING YOUR DEBT

Federal Government Grants are an excellent and often overlooked avenue for funding your business.

CLICK HERE FOR INFORMATION ON FEDERAL GOVERNMENT GRANTS

SBA Financing
The U.S. Small Business Administration (SBA) guarantees loans for private banks/lenders. Programs include the popular 7(a) loan for up to $100,000.

Non-SBA and Specialty Financing
There are commercial lenders that specialize in franchise financing through equipment leases and structured term loans. There is also the ERSOP program, using your 401k or IRA as start-up capital without penalties, taxes or distributions.

The Franchisor
Many franchise companies either offer financial assistance themselves or help franchisees find a bank or other lender. Most have a list of "preferred lenders".

Personal Assets
Whether it's SBA or non-SBA financing, anywhere from 15% to 30% of the total capital need can be required of the borrower. Franchise start-up costs vary wildly across franchises, so this could be anywhere from $20,000 to $200,000. A borrower may need to refinance their personal property or liquidate stocks, bonds, IRAs, 401k, etc.

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