Communicate with Franchisor
Some franchisors can help with access to in-house financing or they may have an approved list of lenders who are likely to accept your franchise loan application.
Verify Small Business Administration Eligibility
Check whether the franchise business is registered and approved by the SBA. Franchise loan applications are listed in the SBA Directory are often processed faster because the required information is readily available for evaluation.
Assets can be property, equipment, stocks, home equity, retirement account or savings. Determine how much you can put up as collateral for your loan. Providing 100% collateral will make access to the franchise loan easier than borrowers with less collateral.
Check Credit Score
Check your credit report before applying for a loan, this will give you, the franchisee, a chance to correct any inaccuracies.
Secure the Down Payment
Franchise loan lenders, on average, expect investors to put 20% down.
Create a Business Plan
Include a description of your business, an analysis of your competitive environment, a marketing plan, a section people requirements and key financial information. You can find a complete guide at Live Plan.
Provide Information About the Franchise
Choose a franchise business that has proof of being profitable. Financial institutions prefer advancing cash to a new franchisee when they have trust in the brand and business model of the business being funded.
For more information Contact Us or call 239 204 3629.