Franchise Financing – How to Get It

If you’d like to purchase a franchise, but aren’t sure where to get the financing from, then you will want to read this article. Specifically in this article, we’ll discuss how to raise investment capital, what banks are looking for before they will loan money for a franchise, and alternative resources you can utilize to finance your franchise. After reading this article, your head should be swimming with ideas on how to get franchise financing.

The best way to get financing for your franchise is to have a good credit rating and a solid character. Most franchises will assist someone who they believe can run a business well but lacks the initial startup cash. Oftentimes these franchises have track records for picking successful business owners, so they have networks of investor groups who they can tap into for capital. Sometimes, your best bet for franchise financing is to get help from the franchise itself.

If that isn’t an option, then you need to know how to go about getting a loan. First of all, if you own property, that is your best bet at getting a loan. Otherwise, you might need the help of family and friends to sign on to share the burden by offering assets in exchange. Unless you have had several big loans in the past that you have made good on with your bank, then you’re going to need some assets. Unless your net worth is very substantial, don’t count on getting a simple signature loan.

If your credit is bad but you have a lot of cash on hand, then this works in your favor. My advice to you is to first find a franchisor that banks will be more apt to give money for. Investing in a new franchisor that only has 5 locations is probably not a good way to get financing from banks. If you were to invest in a McDonald’s franchise, I guarantee you’d have banks lining up at your door waiting to give you money. Before planning your business model, you need to take into account the bank’s point of view. They are in the business of giving money that they are 99% sure will be able to pay back the loan. If they have any doubt in their mind that you could go under, they will not give you financing.

Sometimes, if a franchise itself won’t help you with the financing, they will point you to the direction of someone who will. Because franchises want to sell their franchise to make money, they typically create resources that will help you in approaching venture capitalists and other people who are looking to loan money for a better than average return.

In conclusion, your best chance for franchise financing comes either from the franchise itself, the resources they can point you towards, or the loan you can get for the bank. Depending upon your circumstance, if you do it right it shouldn’t be a problem getting a loan from one of these three resources.

FranServe: Get To Know The Fast-Growing Firm

FranServe is currently one of the largest and fastest growing franchise marketing, consulting and development firms in the franchising industry. With over 250 active affiliated consultants located throughout the US, Canada and Internationally, FranServe’s consultants are discussing franchise opportunities with thousands of potential franchise buyers each month. FranServe boasts a corporate team of industry experts with over 100 years of combined experience in the franchise industry.

FranServe’s Mission
FranServe seeks to “help others achieve their dreams of business ownership through franchising. [Their] professional consultants work with prospects every day that are in the market for a career change and who desire business ownership opportunities. They assist clients in identifying and exploring ideal franchise opportunities that meet each candidate’s professional and personal goals as well as helping them access the capital to own and operate that franchise.”

FranServe consultants are among the best in the industry. All FranServe consultants receive extensive training and support. With a wide range of marketing strategies, FranServe provides consultants with prospective franchise buyers to determine financial qualifications, strengths, goals, market demographics, desired lifestyle and more to help identify and explore potential franchise opportunities.

Interested in learning more? Check out http://franserve.com/