Top Franchise Loans Options & Tips for Qualifying

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What Are Franchising Loans?
Typical Costs of Starting a Franchise

Space used to conduct business: Will it be home-based or a commercial space? Equipment and inventory Insurance Employee training Business licensing and legal fees Marketing expenses (ad budgets, signage, digital campaigns)
Marketing Fees
Royalties
Marketing plans Business strategy Administrative costs Recruitment Consultants
What Is a Franchise Disclosure Document (FDD)?
Information about the franchisor Costs to open a franchise business with that franchisor, including all fees Legal obligations for both the franchisor and franchisee Statistics on other franchises within the company Franchise financial information Franchisor funding options Information about assistance and training provided by franchisor Restrictions places on products and services

Types of Franchising Loans
Franchisor Loan
SBA Loan
SBA 504 SBA 7(a) SBA Express Loans, which have an application response turnaround time of 36 hours.
Online Loan
Traditional Bank Loan
Business Line of Credit
Equipment Loan
Microloan
Peer-to-Peer Lending
5 Tips on Finding a Franchising Loan
Applying for a Franchise Loan
Credit score Collateral Down payment Any prior relationship with banks Business history
Length of the loan Interest rates Loan amount How you’ll use the funds
Business plan Financial history Credit scores Bank information Identifying information Franchise information.
Lenders Who Offer Franchise Loans
Alternatives to Franchising Loans
Crowdfunding: Raise capital from a collective of sources like family, friends, and individual investors. Borrowers can leverage the power of social media and crowdfunding websites to help raise funds. Restaurant loans: Serve the specific needs related to starting, renovating, or expanding a restaurant business. Commercial real estate loans: Loans granted to business entities (individual or group) for a commercial property that is solely for business use.
Conclusion
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About the Author
Lantern is a product comparison site that makes it easy for individuals to shop for products and compare offers with top lenders. Lantern is owned and operated by SoFi Lending Corp., the digital personal finance company that has helped over one million people get their money right.
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