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 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
SBA 504 SBA 7(a) SBA Express Loans, which have an application response turnaround time of 36 hours.
Traditional Bank Loan
Business Line of Credit
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.
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.
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