Overcoming the hurdle of how to finance your franchise purchase is major milestone. At FranFinders, our franchise consultants are also knowledgeable franchise funding experts. As "Your Partner," we will suggest the best combination of financial strategies that fit your specific situation. Our network of franchise financing providers offer competitive rates, which will allow you to jumpstart your franchise business.
401K/IRA Funding: You can use an existing 401K or IRA to fund your franchise purchase while avoiding tax penalties. To access your retirement funds, you must have left your employer. Since the funds are already yours, you do not not incur debt.
Unsecured Lines of Credit: If you have a FICO score of 700 or higher, you may be eligible for unsecured credit cards. These cards are issued in your franchise business name and do not require a personal guarantee. This type of credit is relatively simple to obtain and usually takes approximately 3 weeks.
SBA Loans: The Small Business Administration (SBA) underwrites select banks that lend money for franchise financing. Typically, if a franchise company is pre-approved by the SBA, a bank is more likely to provide franchise financing. Two SBA loan products available for franchise business owners are the SBA 7A and SBA 504. Additionally, the SBA has a program for funding military veterans called the Patriot Express Loan.
Securities-Based Lines of Credit: This lending option allows you to borrow money using your investment portfolio as collateral, while still maintaining ownership and control of your assets.
Home Equity Lines of Credit: This funding program is based off the equity in your home. Different than a loan, it is an open line of credit that can be used for financing your franchise business.
As "Your Partners," we can help you determine what franchise financing options work best for your situation.
NOTE: Conventional Commercial Loans, Grants and Business Lines of Credit are virtually non-existent due to the current economic conditions. Franchise financing guidelines are incredibly stringent and having a high FICO score is mandatory.
If you require assistance to raise your FICO score in order to obtain the financing you require, we are currently working with a Credit Services Company that may be able to assist. Please watch the following video for an explanation of the services.