Franchise Business -- How To Get Loans
When it comes to operating a franchise business, most people look first at available franchises' track records to see which one is most likely to stay in operation. While this is a very important thing to consider, it's not the first step you should make.
In today's economic climate, it's more important to get your financial strategy down first before looking through available franchises. If you're not sure about how to get funding for such a venture, the following options may be helpful.
Patriot Express Program
The Patriot Express is a lending program administered by the Small Business Administration or SBA. The program is geared towards:
- Military personnel on the verge of retirement
- Veterans
- National Guard personnel
- Spouses of military servicepeople
In the program, potential borrowers can get loans as high as $500,000. Although the SBA does not directly give out the loan, it can guarantee 75-85% of the amount for the lenders. It then makes it easier to secure loans because lending institutions are more likely to approve such a low risk investment. Also, credit rating requirements are relatively more relaxed.
Interest rates under this program are also quite low. For loans that take seven years or less to pay, the maximum interest rate is 2.25%. For longer-term loans, the highest rate is only 2.75%.
Qualifying for this loan means meeting certain criteria for eligibility, which include the following:
- Business size
- How the loan will be spent
- Type of business
- Alternate funding sources
The VetFran Initiative
The VetFran (Veterans Transition Franchise Initiative) assists veterans of the military service through its partnership with the IFA or International Franchise Association. The IFA has links with more than 350 franchise operators in the country. The VetFran Program does not provide the loan but its partners can help veterans find loan sources and select franchises to put their money into. Getting into a franchise business is a good way for veterans to continue earning money and staying active at the same time.
Franchise Funding Specialists
Finance professionals specializing in franchises can help develop a financial plan for your prospective franchise. You only need to provide them with information about yourself and your plans, and they will do all the work.
It's advisable to consult such specialists, as they know how franchising goes inside and out. They also have a wide network of colleagues in the industry, so you'll be saving lots of time and stress.
Depending on your situation, these specialists will draw up a list of available lending options for you as well as come up with the actual figures that you have to work with. Franchise funding specialists usually don't charge a fee for their services until after you have received your loan. This is another feature that works in your favor as you get actual help without shelling out cash first.
In today's economic climate, it's more important to get your financial strategy down first before looking through available franchises. If you're not sure about how to get funding for such a venture, the following options may be helpful.
Patriot Express Program
The Patriot Express is a lending program administered by the Small Business Administration or SBA. The program is geared towards:
- Military personnel on the verge of retirement
- Veterans
- National Guard personnel
- Spouses of military servicepeople
In the program, potential borrowers can get loans as high as $500,000. Although the SBA does not directly give out the loan, it can guarantee 75-85% of the amount for the lenders. It then makes it easier to secure loans because lending institutions are more likely to approve such a low risk investment. Also, credit rating requirements are relatively more relaxed.
Interest rates under this program are also quite low. For loans that take seven years or less to pay, the maximum interest rate is 2.25%. For longer-term loans, the highest rate is only 2.75%.
Qualifying for this loan means meeting certain criteria for eligibility, which include the following:
- Business size
- How the loan will be spent
- Type of business
- Alternate funding sources
The VetFran Initiative
The VetFran (Veterans Transition Franchise Initiative) assists veterans of the military service through its partnership with the IFA or International Franchise Association. The IFA has links with more than 350 franchise operators in the country. The VetFran Program does not provide the loan but its partners can help veterans find loan sources and select franchises to put their money into. Getting into a franchise business is a good way for veterans to continue earning money and staying active at the same time.
Franchise Funding Specialists
Finance professionals specializing in franchises can help develop a financial plan for your prospective franchise. You only need to provide them with information about yourself and your plans, and they will do all the work.
It's advisable to consult such specialists, as they know how franchising goes inside and out. They also have a wide network of colleagues in the industry, so you'll be saving lots of time and stress.
Depending on your situation, these specialists will draw up a list of available lending options for you as well as come up with the actual figures that you have to work with. Franchise funding specialists usually don't charge a fee for their services until after you have received your loan. This is another feature that works in your favor as you get actual help without shelling out cash first.
About the Author:
If you have ever taken out any PPI it may have been mis-sold and you could be entitled to claim it back. Real Claims specialises in PPI claims and can help you claim your money back. Alternatively if you face financial troubles Wilson Field offer free Debt Advice.
