4 Ways To Finance Your Franchise
Franchising can be an easy way to break into owning a business as it’s an established, proven system and name that most are familiar with. You can also sidestep common mistakes that most start-ups encounter as the franchisor has already perfected their system. They’ve already figured out the secret sauce to what works best, from daily operations to marketing. If you’re wondering how to finance your first franchise, you’re in the right place! Let us share a few options that can set you up for success, but first, what exactly is franchising?
Definition of Franchising?
Franchising is when you, as a franchisor, buy the rights of an existing, thriving business from the owner of the franchisor. When purchasing a franchise, you’ll incur a franchise fee and an ongoing royalty fee in return for using the brand, logo, ongoing support from the franchisor, and their proven system.
Here at Barrington Commercial Capital, we offer franchise financing solutions to help you get the cash you need to purchase your franchise or improve it. We can structure a loan that fits your needs with a fast pre-approval qualification process. Our loan program offers rates as low as 6%, and we offer up to 90% LTV. We can also help you get extra cash for working capital!
An SBA loan can be an effective way to obtain the funds needed for a franchise. Loan rates are typically competitive with market rates. An advantage of working with the Barrington Commercial Capital team is that your application is constructed in such a way to grant approval faster than traditional channels.
Friends And Family Loan
Another way to jumpstart a new business is to borrow the capital you need from family and friends. However, this method is highly discouraged by business professionals as it has the potential to compromise relationships. If you decide to move forward, make sure both parties have a solid agreement and clear terms for repayment.
Assets can be a great source of cash if you’re looking for a low-risk way to fund your franchise. Some people use their personal savings or sell valuables such as a home, car, or jewelry that can be turned into cash. The caveat to this option is the availability of assets and the value they can bring to fund your business.
If you still have further questions about ways to finance your franchise or other alternative financing options that would be best for your future goals, please contact us by submitting a form online, email us at info@bccfirm, or give us a call at 404-602-9100. To stay up to speed on all things Barrington Commercial Capital, follow us on Facebook, Twitter, and LinkedIn. And lastly, sign-up for our monthly email to stay informed of the latest commercial capital options available to you and your business.