Franchise Business -- How To Get Loans
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
The SBA or Small Business Administration is offering this lending program. It is intended to help mostly the following:
- Military personnel on the verge of retirement
- Veterans
- National Guard personnel
- Military spouses
Under the Patriot Express program, borrowers may borrow up to $500,000. Although the SBA does not provide this loan to applicants, many lender participants are eager to offer this loan because the SBA guarantees 75 to 85 percent of the loan. This means there are considerably fewer risks shouldered by the lending agency and so they are much friendlier to potential borrowers. It is also easier to qualify as the credit score required for it is not set so high.
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:
- Business size
- How the loan will be spent
- Business type
- Alternate funding sources
The VetFran
The VetFran (Veterans Transition Franchise Initiative) assists veterans of the military service through its partnership with the IFA or International Franchise Association. The IFA has links with more than 350 franchise operators in the country. The VetFran Program does not provide the loan but its partners can help veterans find loan sources and select franchises to put their money into. Getting into a franchise business is a good way for veterans to continue earning money and staying active at the same time.
Franchise Funding Specialists
These specialists primarily help you come up with the best financing strategy for your franchise business. All they need is some information about yourself and your plans, and they do the rest.
Consulting franchise funding specialists is advantageous because they are well-versed in the ins and outs of franchising. They have a wide network with which they have cultivated relationships so your applications will go along much more quickly and smoothly.
Depending on your situation, these specialists will draw up a list of available lending options for you as well as come up with the actual figures that you have to work with. Franchise funding specialists usually don't charge a fee for their services until after you have received your loan. This is another feature that works in your favor as you get actual help without shelling out cash first. - 23211
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
The SBA or Small Business Administration is offering this lending program. It is intended to help mostly the following:
- Military personnel on the verge of retirement
- Veterans
- National Guard personnel
- Military spouses
Under the Patriot Express program, borrowers may borrow up to $500,000. Although the SBA does not provide this loan to applicants, many lender participants are eager to offer this loan because the SBA guarantees 75 to 85 percent of the loan. This means there are considerably fewer risks shouldered by the lending agency and so they are much friendlier to potential borrowers. It is also easier to qualify as the credit score required for it is not set so high.
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:
- Business size
- How the loan will be spent
- Business type
- Alternate funding sources
The VetFran
The VetFran (Veterans Transition Franchise Initiative) assists veterans of the military service through its partnership with the IFA or International Franchise Association. The IFA has links with more than 350 franchise operators in the country. The VetFran Program does not provide the loan but its partners can help veterans find loan sources and select franchises to put their money into. Getting into a franchise business is a good way for veterans to continue earning money and staying active at the same time.
Franchise Funding Specialists
These specialists primarily help you come up with the best financing strategy for your franchise business. All they need is some information about yourself and your plans, and they do the rest.
Consulting franchise funding specialists is advantageous because they are well-versed in the ins and outs of franchising. They have a wide network with which they have cultivated relationships so your applications will go along much more quickly and smoothly.
Depending on your situation, these specialists will draw up a list of available lending options for you as well as come up with the actual figures that you have to work with. Franchise funding specialists usually don't charge a fee for their services until after you have received your loan. This is another feature that works in your favor as you get actual help without shelling out cash first. - 23211
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.
posted by X - Men @ 1:54 AM
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