Franchise Financing Options: Find the One That’s Best for You

You’ve already selected the particular franchise you want to buy. Do you know how you’re going to pay for it? If you think it’s just a matter of going to your local bank and getting a loan, think again. In addition to other criteria, unless a bank loan is backed by collateral — property acceptable as security (like your home) — you will have a hard time securing one.

When financing a franchise, it is critically important to determine and evaluate any and all financing options available. This decision can have a significant impact on the success of your business; in fact, inadequate financing is one of the top reasons why businesses fail. And why secure a loan from an institution that charges a high interest rate and short-term repayment when there most likely is a more attractive and affordable alternative? Finding the financing option that works best for you will go a long way toward laying a secure foundation for your franchise’s success.

Be aware that most lending institutions expect to see a solid business plan, and at least 25 to 30 percent of the capital needed coming from you.

Click Here to Learn About Franchise Financing

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