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A Look At Today's Credit Market
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| Guest post by: Anne Barr |
Article Overview: Today's credit market is a big issue in the world of franchising and existing business sales. This article gives a brief overview of what is going on today.
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Free Download - Transfers vs. New First Time Franchisees By Anne Barr |
A Look At Today's Credit Market
Today's Credit Market - a very hot topic in the franchising world as
well as business transactions. Fewer banks are using the SBA program to
make loans. The Preferred Lender banks have specific guidelines and
will hardly consider restaurants or food businesses unless the purchaser
has considerable food experience. In addition, probably because there
have been numerous loan defaults, besides considerable experience, they
now require between 30-50% cash injection from the borrower. In
franchising, if the brand is not well known, it is very hard to get
money for start-ups. Some Franchisors have turned within to sell
additional units to existing franchisees. Others have developed
creative ways to assist in financing for their new franchisees. Some
offer to finance a portion of the franchise fee - others will discount
or waive royalties for a certain period after the franchisee begins to
operate.
Article Tags: business finance, credit market, franchise financing
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About the Author: Anne Barr RSS for Anne's articles - Visit Anne's website Anne Barr has over 27 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. Click here to visit Anne's website Why Use a Franchise Consultant Researching Franchises The Importance of Interviewing Existing Franchisees Independent Contractor vs Employee Biggest Issues Potential Franchisees Need To Consider Take It To The Bank |
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