Franchise opportunities have really expanded over the years and now span practically every industry and most investment budgets.
Buying a franchise can be a good way to start a business when you don’t want to build it from scratch.
However, launching a franchise usually requires financing, and determining the best financing options can be difficult.
While some franchises have financing options and sources in place for their franchisees, you may not qualify for in-house financing. That’s when you might need to get creative with financing your franchise.
Let’s Look at Three Creative Ways to Finance a Franchise
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Financing your Franchise using SBA Guaranteed Loans
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Franchise Financing Using Equipment Financing
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Franchise Financing using Real Estate Financing
1) Financing your Franchise using SBA Guaranteed Loans
SBA 7a loans for franchise acquisition can provide the funding necessary to launch a franchise operation. Both the SBA 7a and 504 programs may fit into your financing strategy. You should work with a preferred lender who understands the franchise industry, who can fast track loan requests, and who offers the best terms and rates. The SBA maintains a list of program-approved franchises – make sure the franchise you’re considering is on that list!
2) Franchise Financing Using Equipment Financing
Almost every franchise requires equipment. In some cases, franchises use equipment from specific vendors to meet the standards laid out by the franchisor.
Depending on the terms of the franchise agreement, franchisees will have to either purchase or lease the equipment, vehicles, appliances, or anything else they need. Equipment financing offers capital specifically to purchase equipment, with flexible terms. Equipmen
