The second step is to be strategic about how and where you apply for a loan. Key targets for your loan application would be your own bank, local business lenders and national lenders. Within that group, it is also important to target lenders who may be familiar with the brand and have made loans to other franchisees. That said, don't use a shotgun approach and apply everywhere. This approach can lead to inefficient use of your time and money as the process can lead to several declines from lenders as you blindly submit applications. This process can take up to 120-190 days before you even get funded. Additionally, some lenders charge application fees so it can get expensive, but more importantly, a lender may do a "hard" credit pull on you when you apply. Multiple hard credit pulls within a timeframe will actually hurt your credit score and decrease your ability to get a loan. One alternative is to use a service like BoeFly, which puts you in the driver's seat. It allows lenders to evaluate your loan package and credit and engage with you directly without officially applying at the bank. Only once it seems like it may be a good match will the lender issue you a proposal or term sheet on the financing and then officially invite you to apply at the bank - thereby saving your credit score and time and money. Unlike other marketplaces and "connecting" websites, BoeFly can significantly reduce your time of origination by up to 75% as well as your costs.

Some things we like about StreetShares include its excellent customer service, easy application, competitive rates, and speedy time-to-funding. You don’t even need to put up any business collateral for a StreetShares loan (though you will need a business guarantor who is willing to essentially “co-sign” your loan). Another thing that makes StreetShares special is that franchise owners who are also veterans and/or who have an interesting business backstory are preferred. See our StreetShares review to learn more about this alternative lending leader.


You do need to create a list of prospects before you reach out. This will help you focus on targeting the right areas and the right people. Do your research. If you’re selling a high-end product, you don’t want to target/cold-call customers in a low-income neighborhood. And, if you’re selling a product suited to children, should you really focus on the section of town that all the college students live in?
He holds a FINRA Series 79 license (M&A investment banking), and a California real estate broker's license. He has sold businesses of his own as well as other people's businesses. Prior to law school Dana was assistant pastor at Calvary Foursquare Church in Hemet, California, and associate pastor at Cathedral of the Valley in Escondido, California. He was the vice principal of Escondido Christian School, and dean of Cathedral Bible College, where he also taught philosophy and theology.
If you're thinking about starting a business, you likely already have an idea of what you want to sell, or at least the market you want to enter. Do a quick search for existing companies in your chosen industry. Learn what current brand leaders are doing, and figure out how you can do it better. If you think your business can deliver something other companies don't (or deliver the same thing, but faster and cheaper), you've got a solid idea and are ready to create a business plan.

Online business lenders are a relatively new option, and they might provide more choice than you can find locally. You might also find it easier to get approved – these lenders are more interested in funding loans and growing than conservative banks and credit unions. Online lenders might also move faster than traditional lenders. That said, they’re not looking to lose money, so the loan still needs to make sense.


If you've always wanted to start your own business but have been afraid of the financial risk involved, opening a franchise might be the perfect solution for you. With a franchise, you get all of the independence, responsibility, and potential profit associated with owning your own business. Unlike starting a business from scratch, a franchise comes with a proven business model and a well-known brand, reducing your risk of failure dramatically. Lenders are well aware of the benefits associated with opening and operating a franchise and are more willing to approve franchise loans than a standard small business loan for a start-up.
If it does not exist, create it. If you have an idea-ideas or skills, think of how to use your ideas or skills to create a business and to put it out there to see what it can attract and what you can create. Many successful businesses started with an idea and that idea has become a success “from one person business to global corporations”. Failure is an attempt at success, if you don’t give up and modify each attempt, then each attempt can become a success.
Franchise business loans typically come with more attractive terms than you are likely to find for any other type of start-up business loan. This is because lenders consider the financial stability, business model, and previous success of the franchise parent company when reviewing a loan application. Banks and alternative lenders are finding franchises to be an increasingly attractive investment. In 2011, the SBA reported approval of $1.5 billion in 7(a) loans for franchises, up from approximately $826 million the previous fiscal year. The 7(a) loan-guarantee program is the SBA's most popular loan program.
According to Meme Moy, a spokesperson for FRANData, about 2,000 franchises are currently on the Registry. When a franchise is on the Registry, lenders can see its historical loan performance. About 55 % of lenders only lend to franchises that are on the franchise registry, so this an important step in choosing a franchise. By choosing a franchise that is on the Registry, you can get better and faster access to SBA funding. To check if your franchise is on the Registry, click here.
As the saying goes: "The only certainties in life are death and taxes." Unfortunately, this is also true if you start a business in Australia - you absolutely must register for the correct taxes to avoid any potential legal implications. The taxes you must register for are dependent on the type of business you choose to start, with some applicable to every type and others only mandatory for certain types.
Franchise businesses serve as the backbone of the restaurant and retail industry. A successful franchise often starts as a small local business that catches the eye of savvy investors. Starbucks, McDonald’s, Walmart and Whole Foods are just a few of the many corporations that started as small mom-and-pop operations and were later franchised into nationwide networks.
Balboa Capital works with franchisees in the quick service restaurant, fast casual dining, hospitality, and fitness industries. Helping you get the best financing solution is our primary goal, but we never forget the importance of excellent customer service. Your experienced Balboa Capital franchise financing manager will work closely with you and is committed to your success. Once we earn your business, you will see why we are fully accredited by the Better Business Bureau (BBB).
Business to business companies can usually access financing more easily than companies that deal with consumers directly. In this type of scenario, you can use your clients' invoices to obtain financing from lenders. The process of obtaining cash advances using your clients’ invoices is called factoring. The factor takes the role of collecting the full amount owed to you by your client, then deducts the amount advanced to you and any other fee then pays you the balance. 
As an industry leader since 2007, National Business Capital understands that every business has its own story, with their own unique goals for growth. NBC listens carefully to YOUR story before connecting you with a Global Marketplace of over 75+ Lenders to find the best franchise loans that fit your business needs perfectly. You will be paired with a Business Financing Advisor, who will be there to help answer any questions, and guide you through the financing process from start to finish.
The loan officer takes your application, and in some cases, all of the applications she has received during a set time period, to a credit committee, and the committee determines whether or not a loan gets approved. This is why it’s so important to have the loan officer on your side–you need someone standing up for you in front of the credit committee when you can’t be present.
The ROBS option allows you to use funds from your retirement savings to finance your franchise without paying early withdrawal penalties and taxes. This can be an attractive option for franchisees that struggle to get traditional loans and are comfortable with some amount of risk. Those with substantial retirement savings may feel most sanguine removing a portion of those funds for this purpose.
Often, banks that aren't willing to work with you based on your financial profile become more amenable if you suggest working with an SBA loan guarantee; these loans are guaranteed up to 90 percent by the SBA. Small businesses simply submit a loan application to the lender for initial review, and if the lender finds the application acceptable, it forwards the application and its credit analysis to the nearest SBA office. After SBA approval, the lender closes the loan and disburses the funds; the borrower makes loan payments to the lender.
Franchises are worth considering because opening a business can be risky, especially if you don’t have prior experience juggling all the things that come with it. You’ll need to choose a name and image for your brand, make sure you have the right staff and build a full suite of products or services to meet demand. Even if you have mentors or a network of friends who are small business owners, you’ll often find that you’re struggling with important decisions.

Business to business companies can usually access financing more easily than companies that deal with consumers directly. In this type of scenario, you can use your clients' invoices to obtain financing from lenders. The process of obtaining cash advances using your clients’ invoices is called factoring. The factor takes the role of collecting the full amount owed to you by your client, then deducts the amount advanced to you and any other fee then pays you the balance. 
It's now possible to reach people (customers, clients, subscribers, etc.) based on shared ideals and values. Microbusinesses of one sort or another have been around since the beginning of commerce, but the ease of connecting with people is a new phenomenon. Also, a large percentage of the population is being comfortable with making purchases online. These things create a perfect storm of economic convergence. It's never been easier.
SBA.gov is the website for the Small Business Association. Founded in 1953, the SBA functions as an independent agency of the federal government whose mission, according to their website, is “to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation.” One way the SBA helps small businesses is by offering financial assistance through three programs: the guaranteed loan program, surety bonds program and venture capital program.
After you register your business, you may need to get an employer identification number (EIN) from the IRS. While this is not required for sole proprietorships with no employees, you may want to apply for one anyway to keep your personal and business taxes separate, or simply to save yourself the trouble later on if you decide to hire someone else. The IRS has provided a checklist to determine whether you will require an EIN to run your business. If you do need an EIN, you can register online for free.

We love this lender for their sterling reputation, excellent customer support, and reasonable terms and rates. But again, you’ll need to already have an established franchise to qualify, as well as good credit. This loan also takes longer to apply for (and receive) compared to most other online franchise loans, and it can potentially take a couple months for the money to come through. You’ll need to submit all the documentation you’d need to get a traditional SBA loan, and it will be helpful if your franchise is already listed in the SBA Franchise Directory. Even though there are a few more hoops to jump through than with other alternative lenders, SmartBiz is still one of the quickest ways for a franchisee to get an SBA loan.
I am looking into opening a truck parts supplies shop/ body shop repairs/painting. I currently own one semi truck and use it for hauling agricultural products. my credit score is in the 600’s. Would I qualify for some type of loan? The local banks in my area have not qualified my for a small business loan, while others with worst credit than I get approved. The town I live in is small, so it’s like you have to know someone to get approved. If you know what I’m saying.
I traveled across the U.S. and around the world, and kept meeting unconventional entrepreneurs -- people who had started a business almost unexpectedly, usually without a lot of planning and almost always without a lot of money. Most of them did so for $1,000 or less, and half of them did so for $100 or less. My goal was to tell their stories in a way that readers could use in their own quest for freedom.
Loans are made by StreetShares investors, who bid on loans for companies. The more appealing your business idea is to investors, the better your loan options. It only takes a few minutes to see if you qualify for a loan. Once you are approved, your loan will get bid on by competing investors. The competition process lasts from one to four days, and then it takes another day or two for the money to get deposited into your account. In total, the process of getting a loan through StreetShares takes about a week.

Sometimes it makes sense to tap 401(k), Individual Retirement Account or other retirement funds rather than seek a loan. But rather than just taking an early withdrawal, which may be subject to taxation, you may want to consider setting up a C corporation that will own and operate the business. Then roll over money from your self-directed retirement account into that corporation’s profit-sharing plan and direct that those funds be invested into the franchised business. But this is a risky option: If the franchise fails, your retirement fund can be wiped out. Check with a professional on possible tax implications, and consider the tradeoffs carefully.


Becoming a small business owner has unique challenges and rewards that aren’t right for everyone. You must be driven, disciplined and able to identify a product or service that people need — one that they will pay enough for to allow you to live comfortably. You have to develop marketing skills and be able to find your own work, because it won’t fall into your lap until after you’re well established. Business owners need to understand how to budget, keep records and handle small business taxes. They must familiarize themselves with employment laws if they want to hire staff. They also need a plan for protecting their business and everything that’s tied to it if something goes wrong. (For more, see Are You An Entrepreneur?)

Hi Rose, generally a business loan or mortgage will not appear on your personal credit report unless you signed a personal guaranty; if you personally guaranteed the loan, there is a chance it may appear on your personal credit report — but then again, it might not. It’s a good idea to check your credit report for any issues before you apply to any loans.


As a member of the ConsumerAffairs Research Team, Kate Williams, Ph.D. believes everyone deserves easy access to accurate and comprehensive information on products and businesses before they make a purchase. She spends countless hours researching companies and industries before writing buyers guides to make sure consumers have all the information they need to make smart, informed buying decisions.

Most lenders will contact a credit bureau to look at your credit file. We suggest you do the same thing before you try to borrow. Under the law, credit bureaus are required to give you all the information they have on file about your credit history. Once you have this tool, you should correct any wrong information or at least make sure your side of the story is on record. For instance, a 90-day delinquency would look bad, but if that 90-day delinquency was caused by being laid off or by illness, then that should be taken into consideration.

According to Meme Moy, a spokesperson for FRANData, about 2,000 franchises are currently on the Registry. When a franchise is on the Registry, lenders can see its historical loan performance. About 55 % of lenders only lend to franchises that are on the franchise registry, so this an important step in choosing a franchise. By choosing a franchise that is on the Registry, you can get better and faster access to SBA funding. To check if your franchise is on the Registry, click here.

You also will need to file certain forms to fulfill your federal and state income tax obligations. The forms you need are determined by your business structure. A complete list of the forms each type of entity will need can be found on the SBA website. You can also find state-specific tax obligations there. Some businesses may also require federal or state licenses and permits to operate. You can use the SBA's database to search for licensing requirements by state and business type.

Stock Option Plans are an extremely popular method of attracting, motivating, and retaining the best employees, especially when the company is unable to pay high salaries. A Stock Option Plan gives the company the flexibility to award stock options to employees, officers, directors, advisors, and consultants, allowing these people to buy stock in the company when they exercise the option.
If you own a home, and have 20-30% equity in it, then you may be able to get a home equity line of credit (HELOC) with a low interest rate. These funds are great to start a business, and can be used for any of your startup fees, including your franchise fees. With a HELOC you can get access to a lump sum immediately and draw against the total as you need it. Like a normal business line of credit, you only pay interest on what you’re using.

But not every small business is positioned for success. In fact, only about two-thirds of businesses with employees survive at least two years, and about half survive five years. So you may be in for a real challenge when you decide to take the plunge, ditch your day job, and become a business owner. The stage is often set in the beginning, so making sure you follow all of the necessary steps when starting your business can set the foundation for success.

At ApplePie Capital, we are committed to fair lending. We make our commercial credit products and services available to all qualified applicants on a consistent and fair basis. ApplePie Capital does not condone or tolerate discrimination against any applicant on any prohibited basis under the Equal Credit Opportunity Act or any applicable state or local law. Fair lending principles are integrated into our corporate policies, lending operations, staff training, marketing efforts, and third-party lending relationships.
Able Lending may also lend you additional funds based on your qualifications and how much you can raise from the people you know. If you can raise up to 10% of your total loan amount from people you know, have a 600+ credit score, have been in business for at least 1 year, and have $100K+ in annual revenue, then you could qualify for a loan through Able Lending. Either way, they can fund you for up to $1,000,000 in as quick as 1 week.

In Canada, you can get a free credit report by contacting one of the two credit reporting agencies, TransUnion or EquiFax Canada. To receive your free credit report you will need to mail or fax one of these companies a request along with copies of two pieces of I.D. Note that you will not be able to get a free credit report through the website of either company; you will be charged a fee for an online report. CreditKarma provides free online credit reports through much of Canada.


On the other hand, food trucks and vending machines are trends helping to mold the industry even though they are not new concepts. The consumer desire and such convenience have become overwhelming, thus inspiring a more innovative variety of food trucks and vending machines. Their market typically consists of business parks and buildings, transit areas, tourists spots, sporting, cultural, and other entertainment events, and tertiary education institutions. Thus, for example, the vending machine company named the Burrito Box, makes all their food off-site and franchises refill the contents daily. With this approach, consumers get the same quality of food that they would get out of fast-casual restaurants. As follows, the capital it would take to start up a company of this sort ranges from $50,000 to $250,000, but it all depends on how equipped the truck comes. Its also important to mention that since consumers have demanded more artisanal products, food businesses are investing in fresh and healthier ingredients and options. Which can be seen already with specialty sandwiches, locally sourced products, vending machines with healthier snacks, build your own concepts (assembly line formats, similar to Chipotle), and upscale versions of the basics. Either way, this model is becoming more popular, lucrative and assessable to entrepreneurs of all kinds.
Outside of the typical startup costs, there are different costs that are unique to franchise businesses. First is the franchise fee, an upfront fee to the franchisor for the right to use the company’s branding and model. It can be paid in a lump sum or in installments, and varies widely by industry and company. It will likely to be at least $10,000 – sometimes substantially higher – and is typically nonrefundable. Franchisors are also likely to charge recurring royalty and marketing fees – usually arranged as a percentage of sales at the franchisee’s store – usually 4 to 8 percent for royalties and 2 to 4 percent for marketing.

Starting a small business typically involves a lot of moving parts. In fact, time management can quickly become a challenge for entrepreneurs who are digging into the business start-up process for the first time. I compiled a list of 10 of the most important steps involved in starting a business and broke them down into easy-to-follow tutorials. Use this guide to make sure you're focusing your attention on the most important stages of starting a business and find out what you need to know so you can streamline your work for each of those steps.
Getting money in advance of doing any business is called “mobilization capital.” This means you are looking for capital to help start a business and don’t have customers yet. This is also known as unsecured lending and is typically very difficult to secure. Your best bet in these situations is to try and raise seed capital investment aka friends and family investors. If your hot idea is really as good as you think, you should be able to find friends to join up and start up a company.
How do so many small businesses get started? It all begins with the right type of financing. Whether you're just starting up or you're expanding your existing business, you need money to get rolling. This guide will help you figure out the type of loan you need for your business and will look at the step-by-step process of securing a business loan:
If it does not exist, create it. If you have an idea-ideas or skills, think of how to use your ideas or skills to create a business and to put it out there to see what it can attract and what you can create. Many successful businesses started with an idea and that idea has become a success “from one person business to global corporations”. Failure is an attempt at success, if you don’t give up and modify each attempt, then each attempt can become a success.
An SBA loan has two major disadvantages for franchises. First, it takes a significant amount of time (30-90 days) to fund. Second, you can’t use the funds from an SBA loan to cover many startup costs, including franchise fees. Those will have to be paid as an out of pocket cost. However, if you can live with these two disadvantages, then SBA loan rates are typically the lowest you’ll find. You can use our SBA loan calculator to determine what your monthly payments might be.

Confidentiality Agreements. These are also referred to as Non-Disclosure Agreements or NDAs. The purpose of the agreement is to allow the holder of confidential information (such as a product or business idea) to share it with a third party. But then the third party is obligated to keep the information confidential and not use it whatsoever, unless allowed by the owner of the information. There are usually standard exceptions to the confidentiality obligations (such as if the information is already in the public domain). See The Key Elements of Non-Disclosure Agreements.
In this article we’re going to discuss how you can finance the purchase of a new franchise. We’ll discuss where to find franchise financing and what you need to consider before jumping in. We’ll also give you some options to think about if you actually need working capital financing for your existing franchise. Before we dive in, let’s take a quick look at your two best options for franchise financing.

Ideally, your Instagram profile picture should be an image of your logo and be the same one displayed on your website and other social media platforms. For the mobile app, your profile picture should be a minimum of 110 pixels width x 110 pixels height. Your picture will be shown in a circle, so your logo has to be clear when cropped. Have a look at how Deputy’s logo is clearly displayed on our Instagram account.
6. Create local awareness and establish a network. Join chambers, business associations, community groups, etc. Find ways to get involved. Networking is a great way to capture business leads as long as you don’t come on too strong. It allows you to meet new contacts and create more brand awareness and new referrals. Sponsor sporting events, nonprofit events or anything that is for a good cause. Get your name out there while also being a good community steward. Give away SWAG (promotional items with your business name, logo and contact info on them). T-shirts are a great example of free walking advertisements for your business.
A contract is, in essence, a written meeting of the minds. While it is typically drawn up by one party and favors the needs and requirements of that party, protecting them from most (if not all) liabilities, it should initially be thought of as a work in progress that changes and grows as each party contributes prior to signing, after which it becomes an official document. “Consideration,” whether it is monetary or a promise to do work or provide a service by a specified date, is at the root of a contract.

You can also offer to pay interest, which shows you are serious about making your business successful. Your family should charge at least the applicable federal rate, which you can find at the IRS website: https://apps.irs.gov/app/picklist/list/federalRates.html. However, if they want to charge more, make sure they don’t go over your state’s maximum interest rate, which you can find online.
None of the information displayed on www.applepiecapital.com (the “Website”) constitutes an offer to provide investment advice. The offering of securities is being conducted pursuant to an exemption from registration under the Securities Act of 1933, as amended. There shall be no offer or sale of any securities without the delivery of confidential offering materials and related documents. ApplePie Capital does not (1) advise on the merits or advisability of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax or transactional advisory services.
Reviewing the brands franchise disclosure document (FDD), speaking with existing franchisees and financial professionals, in conjunction with support from the franchisor, will help you formulate your business plan and build financial projections. Outlining your management and marketing skills, past successes and future goals by including resumes for yourself, planned partners and other employees will allow all parties involved, from the franchisor to lenders, to understand the strengths of the ownership and management team. Personal credit history and financial strength will also play an important role in opening a franchise business.
Real estate investment is a great business. However, the SBA will not guarantee loans for business that do what they consider speculation. Unfortunately, real estate investment is considered speculation. We may be able to get you a non SBA business line of credit up to 150K. If you are interested, please fill out our pre-qualification form and we will schedule a call to go over your options. https://keycommercialcapital.com/prequalify/
Able Lending will manage and administer your process of raising 100% of your needed funds from friends and family. They make it easy for you to look professional, be charged your agreed upon interest rate with each individual investor, and they make sure everyone gets paid on time. They do all of this for a single origination fee of 1-3% at the time of funding.
Although you’ll often need to make a specific financial commitment and meet certain regulations to open a franchise, there’s a lot you get in return. You’ll get the built-in name recognition that brings customers in, as well as guidance on everything from hiring to keeping local regulators happy. Before you get started, there are a few important things to know.
One basic way to protect proprietary company information is through the use of a Confidentiality and Invention Assignment Agreement. This type of agreement deals with confidentiality issues, but can also ensure that the ideas, work product, and inventions the employee creates that are related to company business belong to the company—not the employee.

Bank loans unsecured by collateral are relatively rare, even for those with good credit. In addition to securing a loan with a mortgage on your home or other asset, be ready to be asked to put your own money into the deal, typically about 20% of the amount needed. Even with healthy businesses and solid collateral, most bank loans to new franchisees occur when a borrower has established relationships with a banker, or has previous experience, or is a figure in the community. If that’s not you, consider a loan backed by the U.S. Small Business Administration (SBA).
“My credit is very strong and I owned my house outright. So when I realized the SBA loan would take too long, I decided to go to my personal bank and apply for a HELOC. The whole process took less than two weeks, the interest rates were great, and I never looked back. I was even allowed to use the HELOC for my franchise fee, which other financing wouldn’t allow.”
SBA loans or loans that are backed by the Small Business Administration, a federal agency, do not typically need collateral.   Even startups can get business loans without collateral through the SBA. Technically, banks or lenders will not decline your business loan application if you have no collateral. However, there has to be some kind of security. You may extend a personal guarantee. There could be some assets, whatever form and shape, which may have some tangible value and that can be attached to the loan as security.
Often times, a franchisee looking to open their first franchise will fit nicely into a Small Business Administration (SBA) loan product. SBA loans are made by banks or other participating lenders - not the government. SBA loans allow the lenders to extend credit to borrowers, who they may not be able to lend on a conventional basis, by taking advantage of a guarantee that the SBA provides to the lender in the event of default. There are a few different options, but the Flagship SBA 7a product gives the bank a 75% guarantee if your loan defaults - so that the money that the bank lends to you is not entirely at risk. SBA loans are typically priced at Wall Street Journal Prime + 1 to 2.75%, for terms of 7 to 25 years, depending on the use of funds.
We designed this workshop to help you, a new business owner, understand and meet your federal tax obligations. This workshop is constructed so that the first three lessons... What You Need to Know about Federal Taxes and Your New Business, What You Need to Know about Schedule C and Other Small Business Taxes and Tax Forms; And How to File and Pay Your Taxes Electronically are for everyone, no matter what kind of business you have or whether you have employees.
Whereas working for someone else alleviates these responsibilities, the startup owner takes on all these stresses themselves. Not only that, every country has different laws, regulations and requirements to get your business up and running. So, even if you’ve started a business in one country, you’ve still got to do a pile of research to make sure you do it properly in another.

If you prefer a little more guidance as you search out a franchise opportunity, consider hiring a consultant to locate the perfect opportunity. Consultants gather information on your financial situation and preferences and give you a few options that fit. However, make sure you’re working with a reputable franchise consultant. Ask questions about franchisees they’ve successfully helped and contact those franchisees as references.

Microlenders are nonprofits that typically lend short-term loans of less than $35,000. The APR on these loans is typically higher than that of bank loans. The application may require a detailed business plan and financial statements, as well as a description of what the loan will be used for, making it a lengthy process. Also, the size of the loans is, by definition, “micro.” But these loans may work well for smaller companies or startups that can’t qualify for traditional bank loans, due to a limited operating history, poor personal credit or a lack of collateral.
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