Opening a franchise is a massive investment that is often deemed worthwhile, due to the exceptional benefits it has for your real estate portfolio. First of all, you have a huge marketing machine behind you due to the well-established name brand. In most cases, the parent company will provide your suppliers. Reducing your investment in this regard and freeing up capital for other business endeavors. To do this, you will need to be apprised of the available funding sources when opening a franchise.
Obtaining a Bank Loan For Opening a Franchise
General bank loans are difficult to obtain to open a new business. After all, credit history and time in business are two very important attributes banks consider in the loan-review process. Franchises are different, however, due to the already-established brand. Although, even if you have a solid business model/plan and good credit, the documentation required is often significant.
Credit Cards Specifically for Business
This is a viable option for some franchisees. Nevertheless, be advised that the interest rates will be dependent on your personal credit history. You can expect significantly higher credit limits with small business credit cards, however, which makes them especially attractive to those who are opening a franchise.
Government Loans – SBA
The SBA partners with lenders to offer you the best loans for opening a franchise. The selling point for the SBA is the fact that they will pay a large fraction of the cost if you default on the loan. Which makes them very reliable to lenders. It is the federal government, after all, which makes recompense completely guaranteed. Keep in mind, that the application process is considerable – but you don’t need to have any collateral as is the case with other types of loans.
Opening a franchise is a process that requires quite a bit of investment – but the result is often worth it. Contact Progressive Capital Funding for other flexible financing options for your business.