
Funding
is a key element in the start-up phase of most businesses
and franchises are no exception. Since the total
investment required to start a franchise or business
opportunity can range from under $10,000 to several
million, potential franchisees will often seek financing
to form part of their investment
The necessity of financing is not just about getting
the business started. It is vital for the franchisee
that you have the funds not just to start the business
but to provide cash flow through the early stages so
that you can expand your business. Most franchisors
will look very carefully at a number of key factors
when assessing potential franchisees. These will include
management or marketing experience and your fit with
the company but will also involve an assessment of your
financial capabilities.
One of the difficulties when considering starting a
franchise is assessing exactly how much you can afford
to invest. Many potential franchisees will come from
employment and will be attracted to franchising because
of the track record, experience and brand presence of
the franchisor. It is such things that result in the
lower failure rate of franchised start-ups. Luckily
for you, many lenders are also attracted by those same
factors. Many franchisors, because of their track records
are known to lenders in their industry and are comfortable
with franchisees securing financing for a portion of
their investment. This can be in many forms. It may
include the leasing of vans or equipment and funding
for the entire project.
Many potential franchisees find the search process
difficult because they have no clear perception of how
much they may be able to borrow and therefore are unsure
of how much they will be able to invest.
Because FranchiseFunding.net
(Diamond Financial) is not a direct lender we are able
to select the best source of funding from our pool of
aggressive lenders. We can source the lender
most receptive to your qualifications, type of business,
site location and other criteria to increase your chances
of success. The company’s specialty is SBA (Small
Business Administration) loans which are provided by
conventional lenders but guaranteed by the Small Business
Administration.
If you have OK to good personal credit, management
or strong work experience and 20% - 25% down payment,
then FranchiseFunding.net
can help you secure the financing that you need now.
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