You’ve dreamed about owning a franchise. Because you need funding to make that dream a reality, Fulcrum Franchise Development wants to help by sharing some key considerations and options.
Before you take a serious look at your financial course of action, keep these points in mind:
- Single or multi. Single or multi-unit franchise ownership can affect your funding strategy—note that some franchisors require a 3-unit ownership.
- Plan ahead. There are many steps involved in getting your finances in order. Ownership requires doing your homework about the process and giving yourself the proper time you need to do it right.
- Pre-qualify and persevere. Get pre-qualified so you have a clearer picture of what you can afford. Keep all your options open, and don’t give up if one or more banks reject you—it may just mean your business concept doesn’t fit their lending portfolio. At Fulcrum Franchise Development, we partner with the industry’s most notable lenders that specialize in franchise lending.
- Financial Services Calculator. Not sure where to start? Fulcrum makes your process easier with our Franchise Services Calculator. It confidentially gathers necessary information you need to make the best funding development decisions.
- SBA Loans. The SBA (Small Business Administration) gives loan guarantees to lenders who provide financing to qualified borrowers, making the transaction less risky and more attractive to the lender. SBA loans can be a great resource for franchise funding and can be secured within 60–90 days.
- ROBs Funding. Rollovers for Business Start-Up (ROBs) funding taps into qualified retirement accounts, such as a 401(k), 403(b) or IRA. It’s a tax-deferred and penalty-free possibility that lets you still contribute funds to a tax-advantaged retirement account as your business grows.
- Alternative Lending. If commercial bank loans or SBA (Small Business Administration) loans aren’t a financing fit for you, consider alternative lenders. They often have fewer requirements and a shorter turnaround than traditional providers; however, make sure their shorter repayment terms or lower loan amounts are worth it for you.
- Home Equity Lines of Credit. Use the equity you’ve built in your home to fund your future! Home equity lines will typically cost 1–3% of your home’s value, and interest rates range from 5–10%, depending on your credit. It takes about 30–60 days to access financing through a home equity line.
For Franchise Funding and So Much More
From health services and food and beverage, to retail and senior care, Fulcrum Franchise Development represents more than 400 franchises in a myriad of profitable industries. Find your franchise fit with Fulcrum— contact us for a free, no-obligation consultation.