Franchise Financing For First Time Owners
Whether you’re a first time owner of a franchise or you’ve already bought one before, your to-do list is probably a mile long. As a first time owner, this list can be daunting, especially when everything relates back to the number one task: franchise financing. You’re probably concerned about finding the right lender and making sure you have enough money in the bank to back everything you have to do. Yes, it is going to take some time on your part to do the research and find the right program, but once you have checked out all your options, you’ll have peace of mind when you do finally sign the contract.
Start With the Parent Franchise
The mother company is going to have lots of information for you about financing. Listen to them and ask if they have any resources. Some will, and some will tell you that you’re on your own. One thing they will know is how much money you will need to actually construct and equip your franchise before you open. Plus, you’ll be getting their brand awareness and marketing benefits.
Find Out If You Qualify for an SBA-Backed Loan
The Small Business Administration offers many resources for franchisees and small businesses. Although they don’t offer loans, they do have a loan program that helps level the playing field for small companies against larger organizations which have more resources. Typically, if your business qualifies, you can get longer terms and better interest rates. The application process can be daunting, but the parent company should have resources to help you provide the documentation you need to get a loan.
Talk to Alternative Lenders
One avenue that is becoming popular is working with alternative lenders. Alternative lenders like Trihawk Capital can provide fast and flexible financing options to help you get your franchise up an running.
Do your research by finding the resources which are available to you for franchise financing. Once you have the financing you need, the rest of the to-do list will take care of itself. Contact us today to learn more about our franchise financing programs.
