People who are contemplating to start a franchise business often start by looking at track records of existing ones to gauge which have been around for a while and are thus believed to be operationally sustainable. Although this is a key step in choosing a franchise business, it should not be the first one.
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.
The Patriot Express
This program is a lending program offered by the SBA (Small Business Administration). This program mostly helps the following individuals:
- Retiring military personnel
- Veterans
- Members of the National Guard
- Those who are married to persons in the military
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.
The program also carries comparably low loan rates. Loans that are payable in seven years or less, charge only as high as 2.25%. Loans payable in longer terms carry only a maximum interest of 2.75%.
A detailed explanation of eligibility criteria set by the SBA can be found on their website but these typically include:
- The size of the business
- How the loan will be spent
- Type of business
- Other ways to get funding
The VetFran Initiative
The Veterans Transition Franchise Initiative or VetFran was initiated by the International Franchise Association (IFA) to help military veterans. The IFA partners with more than 350 franchise corporations and encourages veterans to go into franchising by extending financial incentives. The program itself does not offer funding, but the IFA's franchise partners do provide financing or help applicants choose the right lending program.
Franchise Funding Specialists
Franchise funding specialists can help you devise a financing strategy so that you may narrow down the best lending options available to you. All you have to do is provide them with all the necessary information and they will do the leg work for you.
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.
It is also wise to use the help of specialists because you do not actually have to pay them until you receive the loan that they helped you secure. Even before that, they can already assist you with fund sourcing and getting a grip of the figures that you will be working with.
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.
The Patriot Express
This program is a lending program offered by the SBA (Small Business Administration). This program mostly helps the following individuals:
- Retiring military personnel
- Veterans
- Members of the National Guard
- Those who are married to persons in the military
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.
The program also carries comparably low loan rates. Loans that are payable in seven years or less, charge only as high as 2.25%. Loans payable in longer terms carry only a maximum interest of 2.75%.
A detailed explanation of eligibility criteria set by the SBA can be found on their website but these typically include:
- The size of the business
- How the loan will be spent
- Type of business
- Other ways to get funding
The VetFran Initiative
The Veterans Transition Franchise Initiative or VetFran was initiated by the International Franchise Association (IFA) to help military veterans. The IFA partners with more than 350 franchise corporations and encourages veterans to go into franchising by extending financial incentives. The program itself does not offer funding, but the IFA's franchise partners do provide financing or help applicants choose the right lending program.
Franchise Funding Specialists
Franchise funding specialists can help you devise a financing strategy so that you may narrow down the best lending options available to you. All you have to do is provide them with all the necessary information and they will do the leg work for you.
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.
It is also wise to use the help of specialists because you do not actually have to pay them until you receive the loan that they helped you secure. Even before that, they can already assist you with fund sourcing and getting a grip of the figures that you will be working with.
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.
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