Buying an existing business can save you a lot, especially in creating a sturdy client base. Regardless of such benefits, franchising still needs money. Sometimes, a lucrative opportunity may present itself, but your account balance does not allow you to take advantage of it. That is why you need to consider and understand the different franchise financing options you have, such as those discussed in this article.
The Best Options
Alternative Lenders
Most franchisers have finally understood the benefits that come with getting franchise financing from alternative lenders. This has been the cause of the sudden increase in the number of such lenders. There are several benefits associated with obtaining funding from alternative lenders, including;
• Fast loan processing – you can get the money in your account within hours of application
• No collateral required
• Lenient qualification requirements
• A wide variety of products
Nonetheless, this type of financing may come in at a higher interest rate than other options.
SBA Loans
One of the reasons Small Business Administration funding has gained popularity is that it is backed by the U.S government. That means it is a win-win situation for both the lender and the borrower. Some of the best SBA loans you can acquire for your franchise financing are SBA 7(a) and SBA 504.
Crowdfunding
This is where you create campaigns on online and offline platforms to help you raise the amount you require for your franchise financing. You have the option to create your crowdfunding campaign or work with organizations that specialize in crowdfunding for businesses and franchises. You can also check out some of the websites that offer crowdfunding services for specific enterprises and industries. Such websites collect money and then lend it out to people like you who require funding.
Commercial Bank Loans
Conventional bank loans can also be among the franchise financing options available for you. However, you will need to improve your credit rating and present valuable collateral to qualify for such funding.
The lucrativeness of franchising cannot be overlooked, especially if you get the necessary funding. The good news is that you have several options, alternative lenders being among the best. Feel free to contact Lode Capital today to find out how to fund your franchise and achieve business success.