How to Find a Loan for a Franchise Business Opportunity
How to Find a Loan for a Franchise Business Opportunity
So what does the earnest and talented entrepreneur with a skinny wallet do? The same thing I did to make my way through college: take out a loan. The problem many people run into, though, is that loans aren’t always available to everyone—or at least they don’t seem like it.
If you’ve got good credit and enough assets, it shouldn’t be too hard to approach a bank or lending institution, even through your franchisor, and get the sufficient funding to start your franchise. There are even lenders you can approach via the internet to get that startup loan that you’re looking for—Diamond Financial and Triple-AAA Financial Service are two great options. But, in our dwindling economy with skyrocketing interest rates, if your credit is even slightly off or you aren’t a homeowner with assets to leverage, chances are you’re going to find yourself pacing, biting your nails, and losing precious hours of sleep over whether your financing is going to come through or not. There are alternatives to needless worry, however. Aside from the option of finding a partner, investors, or someone in your family who has the cash to cosign the deal with you, there is an alternative that has proven effective for a good number of franchisees hoping for their own franchise opportunities. That alternative is the US government.
Yes, you read that right; the United States government can actually help you. Though they may be tapping your phone and reading your email as we speak, they are genuinely concerned with getting more small businesses—franchises included—up and running, because that is what capitalism, and thus our nation, thrives on. The department you’re looking for in this instance is the Small Business Administration (SBA), and they really can get you the money that you’re looking for. The way it works is this: when a person interested in a small business franchise can’t get a loan from a private lender for whatever reason, the SBA is able to step in and provide a guaranty to the lender as high as $2mil, making a loan possible by taking the responsibility for a potential business—and thus loan-repayment—failure off the franchisee’s shoulders.
There are, of course, some hoops for the potential franchise buyer to jump through in order to get that SBA loan, but the rules of engagement are a little different with the SBA than they are with private lenders. Banks and other financial institutions tend to look more at credit and assets than anything else, because in our fading economy, their responsibility is keeping their hands on dollars whether the loan recipient succeeds or not—sounds cold, but we can’t blame them. The SBA, however, is far more interested in the business model and the professional chops of the candidate; if they think that this guy with this work from home business plan can make it, he gets the guaranty. Their concern is not keeping their hands on dollars today, but getting functional businesses up and going to pump more dollars into the national economy tomorrow.
As a side note, because the SBA is interested in functional business plans, they also already have a record of franchisors registered with them, having already provided and cleared their business models with the SBA, who agrees that their plans and practices are lucrative and clean. This is a good resource in determining what franchise to purchase as well as figuring out if it will be affordable for you.
Though getting a loan can seem like a hopeless endeavor, there are very real and very effective ways to get it done, without having to leverage your car and sell the shirt off your back—after all, no one is going to be comfortable coming into the SIGNARAMA owned by that creepy shirtless guy. Your franchisor and the Small Business Administration can help when things look really dire. And when you’ve passed through the trial and learn how it feels to both flounder and fly when it comes to financing a franchise business, you can always go into business helping others to accomplish what you have. Exclusive Commercial Lending and IRA and 401(k) Retirement Plan Rollover are two companies that allow you to do just that: make other people’s business dreams a reality.
How to Find a Loan for a Franchise Business Opportunity - To learn more about this author, visit Candice Clem's Website.
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Of the dozen difficult aspects of selecting, starting, and running a new franchise opportunity, few are as potentially paralyzing as paying for it. Most of us have learned that money doesn’t grow on trees, and the average franchisee-to-be simply doesn’t have the cold, hard resources to make a business purchase outright. Whether the goal is a Sterling Optical costing no less than $100,000 or a Baymont Inn at $1mil, the staggering line of zeroes at the end of the prices on those business opportunities can sometimes be enough to discourage even a veteran entrepreneur.
So what does the earnest and talented entrepreneur with a skinny wallet do? The same thing I did to make my way through college: take out a loan. The problem many people run into, though, is that loans aren’t always available to everyone—or at least they don’t seem like it.
If you’ve got good credit and enough assets, it shouldn’t be too hard to approach a bank or lending institution, even through your franchisor, and get the sufficient funding to start your franchise. There are even lenders you can approach via the internet to get that startup loan that you’re looking for—Diamond Financial and Triple-AAA Financial Service are two great options. But, in our dwindling economy with skyrocketing interest rates, if your credit is even slightly off or you aren’t a homeowner with assets to leverage, chances are you’re going to find yourself pacing, biting your nails, and losing precious hours of sleep over whether your financing is going to come through or not. There are alternatives to needless worry, however. Aside from the option of finding a partner, investors, or someone in your family who has the cash to cosign the deal with you, there is an alternative that has proven effective for a good number of franchisees hoping for their own franchise opportunities. That alternative is the US government.
Yes, you read that right; the United States government can actually help you. Though they may be tapping your phone and reading your email as we speak, they are genuinely concerned with getting more small businesses—franchises included—up and running, because that is what capitalism, and thus our nation, thrives on. The department you’re looking for in this instance is the Small Business Administration (SBA), and they really can get you the money that you’re looking for. The way it works is this: when a person interested in a small business franchise can’t get a loan from a private lender for whatever reason, the SBA is able to step in and provide a guaranty to the lender as high as $2mil, making a loan possible by taking the responsibility for a potential business—and thus loan-repayment—failure off the franchisee’s shoulders.
There are, of course, some hoops for the potential franchise buyer to jump through in order to get that SBA loan, but the rules of engagement are a little different with the SBA than they are with private lenders. Banks and other financial institutions tend to look more at credit and assets than anything else, because in our fading economy, their responsibility is keeping their hands on dollars whether the loan recipient succeeds or not—sounds cold, but we can’t blame them. The SBA, however, is far more interested in the business model and the professional chops of the candidate; if they think that this guy with this work from home business plan can make it, he gets the guaranty. Their concern is not keeping their hands on dollars today, but getting functional businesses up and going to pump more dollars into the national economy tomorrow.
As a side note, because the SBA is interested in functional business plans, they also already have a record of franchisors registered with them, having already provided and cleared their business models with the SBA, who agrees that their plans and practices are lucrative and clean. This is a good resource in determining what franchise to purchase as well as figuring out if it will be affordable for you.
Though getting a loan can seem like a hopeless endeavor, there are very real and very effective ways to get it done, without having to leverage your car and sell the shirt off your back—after all, no one is going to be comfortable coming into the SIGNARAMA owned by that creepy shirtless guy. Your franchisor and the Small Business Administration can help when things look really dire. And when you’ve passed through the trial and learn how it feels to both flounder and fly when it comes to financing a franchise business, you can always go into business helping others to accomplish what you have. Exclusive Commercial Lending and IRA and 401(k) Retirement Plan Rollover are two companies that allow you to do just that: make other people’s business dreams a reality.
How to Find a Loan for a Franchise Business Opportunity - To learn more about this author, visit Candice Clem's Website.
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For an online Car Loan Calculator and finance for a cheap car loan. Get approved on car loans or car finance in Australia with cheap bank car loans and finding a car finance broker. Commercial car loans including business car finance and car lease. Car Loan Calculator has information on finance companies and getting the right cheap car loan from banks at best car loan rates and a online car loan calculator for all finance in Australia. Get the best car finance with our help at Car Loan Calculator and Finance Ezi. - Visit Richard Jefferies's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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