Franchise Loans Checklist
What You Should Know When Getting A Franchise Loan
Owning a franchise is considered one of the most “turn key” business models available. Training, branding, support, and other benefits come with buying into a franchise. However, getting from the idea of a franchise to financing an operation can be tricky, if you do not know where to start.
Franchise Loans: Beyond The Paperwork
After you have met with a representative from the franchisor, and you go over the paperwork with a franchise attorney to make certain everything is understood and in order, it is time to figure out how much capital it is going to take to get the franchise up and running. Yes, there is the initial fee, but beyond that, there are going to be additional start-up expenses. Some franchises require an establishment that is built (or modified) to the franchisor’s specifications. This requires commercial real estate and construction loans. The next thing to consider is the capital necessary for equipment. Then working capital to get inventory and supplies from vendors, as well as other financial considerations. The financial and real estate requirements vary from franchise to franchise. Obviously home-based franchises are going to require less financing than, say, building a franchised hotel from the ground up. We have put together a procedure that can be followed for almost any type of franchise financing needed – from acquiring land to purchasing equipment, and even getting access to working capital.
The Balance Sheet
Financial Stability And History
Creating A Business Plan
Turning To The Franchisor
More Helpful Advice
Now that you have the basics about how to prepare to get franchise loans and supplemental funding, there are a few more tips we can offer. Look for lenders who not only understand the needs of small businesses, but specifically franchises. If possible, when working with lenders, look for franchise financing that does not bog down the balance sheets with debt. This can severely compromise business credit ratings and hinder franchise growth. Above all, do not put your life savings or retirement accounts on the line simply to launch a franchise operation. There are myriad financing options available – some based on debt, others equity, and even options for funding without taking on any debt at all. Explore your options, shop around, and do not settle for financing that will put your business in danger by locking you into payment plans that will eat away at your revenue or restrict your franchise’s cash flow.
Provide Franchise Loans To Franchisees
If you are still looking for the ideal franchise, or if you are about to take the plunge, consider The Commercial Capital Training Group. At The Commercial Capital Training Group (CCTG), we offer an alternative to the traditional franchise model. We provide the training and tools you need to launch your own business, with your branding, your clients, and (most importantly) your revenue.
CCTG offers you the opportunity to launch and run your own business in the world of commercial finance. Instead of being the person seeking franchise financing, you will be the one orchestrating financial agreements between investors and entrepreneurs, and taking home profits in an arena of nearly unlimited earning potential. We offer 24-hour support, access to our exclusive board of lenders, and everything you need to achieve full financial independence.
If you would like to learn more about how we can help you reach your dreams, contact The Commercial Capital Training Group today!