Thinking of investing in a franchise opportunity? There are some things that you should know; franchise funding is different than other types of lending and borrowing.
Here are some of your franchise funding options:
Franchisor Franchise Loan
These opportunities are tempting, as they often are helpful if you lack a solid credit history. If you do have strong credit, it makes sense to shop around as you may find cheaper rates elsewhere. Still, there is some comfort in borrowing from a lender that has familiarity with the franchise that you are investing in.
Traditional Bank Loan
If you do have respectable credit, a traditional bank loan is an option for funding your franchise. Most lenders are reluctant to fund brand-new businesses, but an established franchise is a different situation- and they may be willing to fund your enterprise.
Small Business Administration (SBA) Loan
Are you familiar with SBA loan programs? These work well if you have good credit, and they usually come with alluring interest rates and other incentives. Look online to learn more about these funding options.
Alternative Lender Financing
There are several alternative lenders out there that are willing to fund new businesses- including franchises. Make sure to read the terms of the loan carefully and compare rates before committing to a lender.
Small Business Credit Card
If you have enough credit on a small business credit card, you may be able to use this to fund a franchise! Plus, you may be rewarded with cashback or valuable points that convert to more money later. Make sure that you know the terms of the card and the interest rates, as some cards may be higher than other loans.
Before you take the plunge and invest in a franchise opportunity, talk to the money professionals at Rushview Commercial Funding. They may be able to discuss funding options with you- many of which you may not have realized were available to you! Call or visit today.