Franchise Funding 101

Whether you’re buying your first franchise or you’re a seasoned, multiple franchise owner, we will help you navigate the confusing, and sometimes treacherous, path to obtaining the financing best suited to you and your specific situation.

The important thing to know is that there are many financing options available not only for the purchase of your franchise, but for the working capital and equipment you will need to get off the ground and succeed.

But which option, or combination of options for that matter, will be the most cost-effective way for you to achieve all of your funding goals? Well, that’s where we come in. We have partnered with some of the most experienced franchise lenders, both regionally and nationally, to be able to offer our franchise clients a full suite of franchise funding options.

We, together with our partners, monitor what franchise concepts various lenders are seeking, and help you apply right from the start with the lenders who prefer your concept while skipping the ones who don’t. Every lender has different preferences for what fits in their lending “box”, so knowing which lender favors your franchise concept saves you time, aggravation, and turndowns.

So, where do you go from here? Let’s take a look at some of your funding options.

Unsecured Lines of Credit

No financials or collateral required. If you have a solid credit profile (or have a credit partner who does), you can get quickly pre-qualified for your franchise funding. Especially good for those needing less than $150,000.

Short-Term Working Capital

Short-term working capital comes in a variety of types designed to fund quickly and without the hassle of having to provide mountains of paperwork.

401(k) ROBS Plans

Our 401(k) Rollover for Business Startups (ROBS), allows you to use your 401(k) or other eligible retirement funds as working capital for your franchise funding – tax-deferred and penalty free.

Conventional Bank Loans

This is a more traditional source of funding and can be secured or unsecured. This loan will have a set amount borrowed with set terms for payback.

SBA Loans

The U.S. Small Business Administration guarantees these loans through banks. They generally have lower interest rates and more attractive terms. This can be a good option for franchise purchasing.

Equipment Funding

Avoid costly depreciation and added debt on your balance sheet by leasing your equipment. You have the potential for tax savings and you don’t have to put up additional collateral.

Securities-Backed Lines of Credit

If you have a portfolio of stocks and bonds, you can leverage them to secure a Securities-Backed Line of Credit.