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.
Bank of America can work with you to design a special lending program to help you grow and better manage your business. This alliance enables us to provide customized financing solutions, based on a thorough understanding of your particular business model. Plus, you’ll have access to an underwriter who understands your business. We offer a variety of program options including:
This will include choosing and registering your business name and choosing a business structure. Many small business startups will choose between a sole-proprietorship, a partnership, and a limited liability company. However, you can also start a corporation or a non-profit company. Each of these structures will have different pros and cons and be treated differently when it comes time to file taxes.

Government loans are typically offered through banks and credit unions that partner with the Small Business Administration (SBA). The SBA is a U.S. government body, with the motive of providing support for small businesses and entrepreneurs. For each loan authorized, a government-backed guarantee offers serious credibility, since the lender knows that even if you default, the government will pay off the balance. These loans can be applied to a number of uses, such as:

Some franchising companies run their own franchise financing programs that help franchisees get in the door. Program offerings and requirements vary by franchisor, with such options as limited-term loans, reduced license fees or reduced royalties, and minority stake ownership by franchisors. Some companies, like Ace Hardware, offer financing to existing franchisees to open a new store or buy out a competitor.
Online personal loans are an option when nobody will approve you for a business loan. Ideally, you’ll borrow in the name of your business – it’s cleaner and more professional that way. But some small business owners can only get personal loans. Try marketplace lenders and peer to peer lenders, which tend to offer competitive rates and quick turnaround on applications.

A lockbox advance is a high risk merchant cash advance using a credit card split, but the way its split is different than a conventional MCA advance. When a lockbox is involved, all deposits are put into a new bank account setup by the funder, where the funder will then collect its share of the daily batches, and then release to the merchant. The process is a bit slower, taking up to 24 hours for the money to hit the merchant’s account.
Business financing options other than traditional loans or lines of credit include personal loans for business or business credit cards. A personal loan for business is a good option if your business is still young and you don’t qualify for traditional financing. Personal-loan providers look at your personal credit score and income instead of your business history.

While many business experts believe that you should get into a business you are passionate about, it is important that you consider the market’s demand as well as your target demographics. You can’t start a business about something you love and expect people to patronize your services or your products on the get go. The success of a franchise hinges on a lot of factors, but demand and the target market should top your list.
SBA loans are government-guaranteed loans with long repayment terms and low interest rates. There are many different types of SBA loans, but the most popular SBA loans are 7a loans and 504 loans. An SBA 7(a) loan can be used for working capital (marketing, staffing, etc), equipment, or for commercial real estate. The SBA 504 loan is only for commercial real estate and fixed equipment. Franchises are often a great fit for SBA loans, because of the SBA’s policy goals to help build small businesses to grow the economy.
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.
The first step in applying for a franchise loan is making sure you are well-prepared before you connect with a lender. This means that you should have identified the franchise you wish to pursue, and should have your supporting documents and loan package organized and available when you engage with lenders. The goal is to make a solid first impression to show that you are prepared and will successfully put the lender's money to good use and can be trusted to repay the loan. Accessing capital to start your business is perhaps the most difficult step in the start-up process. An online service like BoeFly.com, (we specialize in franchise finance - see what franchise brands have to say about BoeFly) or working with a financial adviser can help prepare you to address any deficiencies within your loan package. Loan brokers will typically cost you a $2000 packaging fee or more, and they may charge the lender a fee of 1-2% of the loan amount, which may come back to you as a hidden cost in the closing costs or in increased interest rates. In contrast, BoeFly has several plans available starting at just $249 to help fully guide you through the process of building a professional, lender ready package and connect you with over 5,000 lenders.

In most cases, franchise owners provide technical support, equipment, and other necessary materials to their franchisees. Also, fellow franchisees can merge and share best practices, business approaches, and marketing strategies to colleagues whose business acumen and management skills are still developing. Simply put, there are a lot of good reasons why starting a business by buying a franchise will be a success.
I’d like to call your attention to a series of video tutorials I did not that long ago as a donation to this community. They are all here and I’d like you to be aware of them. They are organized into modules, 2-10 minutes each. You can pick and choose and jump around, or run through them in the original order. They are here as a resource for you. (Note: the text in bold here highlights links to the videos)
It’s useful to come up with a business plan to think through what you want to do for the development of the product or service, marketing, financial projections, and more. And you should then get input from trusted business and finance advisors. But don’t go overboard with a 50-page business plan. In reality, many startups have to deviate from their plan as the business develops.
If you are using the web to help you acquire a loan, beware of "Free" services, sites not certified by TRUSTe or sites with poor Better Business Bureau ratings. These sites may just want your contact information which they then sell to brokers and lenders. It is not a very efficient way for you to get financing and may lead to wasted time, money and calls from unsavory and unqualified sources. Also, make sure there are no hidden fees that either you or the lender will need to make - or guarantees that you will receive a loan.
Also make sure you have a structured process for setting measurable objectives, reviewing your progress, and adjusting the objectives or setting new ones. A good way is to keep a simple monthly checklist of the most important items. All of this should be driven by your overall business plan (you do have a business plan, don’t you?), and you should use the data you collect to help you keep the plan constantly updated.
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.
Venture capitalists tend to start investing at $1,000,000, and they prefer to invest in high-growth and high-risk businesses. High-growth investment means the venture capital investor would see a return in 3-7 years by selling the company or going public. Venture capitalists tend to require a large amount of equity in your business, including a position on the board of directors.
Having liquid assets, valuable collateral and a good credit rating will go a long way to helping you get a franchise loan. According to The Wall Street Journal, most banks will be looking for around one-fifth or 20% of franchise startup costs to come from the owner before considering lending options, and without a good credit score, most lenders won't feel comfortable extending a loan even if the proposed franchise is known for long-standing success.
Shelton advises entrepreneurs to apply for a larger loan once they have the numbers to prove that they are growing: “What you’re hoping to get from these smaller loans is traction,” which you can use to “pitch [your story] as a growth story” when you apply for a larger traditional loan from a bank. Proving that you have experience growing your business from someone else’s money will help you convince the bank that you can do the same with their loan.
Loans backed by the Small Business Administration (SBA) are a favorite of franchisees, since they tend to have higher limits and lower rates than commercial loans. However, SBA loans come with strict requirements, including the need to prove that you don’t have the ability to obtain a loan from traditional lenders. Partner institutions disburse and administer the loans with SBA approval and application requirements tend to be quite extensive.
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.

Then, in What You Need to Know When You Run Your Business Out of Your Home and How to Set Up a Retirement Plan for You and Your Employees, we'll discuss some information that may be relevant to you now-- or that may become relevant once your business has become established. The final four lessons... What You Need to Know about Federal Taxes when Hiring Employees or Independent Contractors, How to Manage Payroll so You Withhold the Correct Amount from Employees, How to Make Tax Deposits and File a Return to Report Your Payroll Taxes. And Hiring People Who Live in the U.S. but Who Aren't U.S. Citizens, ....are for those employers who already have, or who are thinking about hiring, employees. Because this is a virtual workshop, you can choose the lessons that apply to you.
Most lenders are interested in how long you've been at a certain job or lived in the same location, and whether you have a record of finishing what you start. If your past record doesn't show a history of stability, then be prepared with good explanations. Not only is the amount of income you earn important but so is your ability to live within that income. Some people earn $100,000 a year and still can't pay their debts, while others budget nicely on $20,000 a year.
2. Get a website. In today’s technology-based world, the first thing a potential customer or employee does is Google your business. You need a website to show you’re real and to offer information about your business to potential customers. Make sure your website is mobile-friendly and be sure to ask for search engine optimization. Use Google Analytics to track the traffic to your website, but be leery of people who promise you top positions on search engines. While there are lots of things that can be done to increase your ranking on various search engines, unless the developer works for Google, I would be leery of a promise to get you to the top. Remember that you get what you pay for. There are a ton of do it yourself website services, but depending on the features you need on your site, some things are better left to the experts.
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.
It turns out, he thought the process of starting a business was really complicated. "I don't want to go through all that stuff," he said, "unless I'm absolutely sure my idea is perfect." Like a lot of would-be entrepreneurs, he was stalling because he was intimidated by the apparent complexity of the administrative and legal tasks involved in starting a business.

Work with the franchisor’s preferred lenders: Often times, franchisors will partner with preferred lenders that they refer you to for financing. They may also have relationships with leasing companies that can lease you essential equipment for your franchise. When possible you should look at working with these lenders, because they’re familiar with your franchise brand and business model.
You can get an approval decision right after you submit your franchise financing application. Our automated decision-making technology will review your application, and we will let you know if you qualify immediately thereafter. There is no need to waste time gathering up a bunch of your financial statements and copies of your tax returns. You will be happy to know that we look at all credit scores. In addition, you have a limited credit history and still be can a good candidate.
At some point nearly every franchise will seek a loan or working capital. Knowing your franchise financing options can be the difference between thousands of dollars saved or lost. If you are a franchise business owner seeking financing and need help understanding the options, please reach-out to one of our funding specialists and we’ll help you navigate the process.
A ROBS isn’t a loan, so there’s no debt or interest to pay back. This lets ROBS-financed franchises conserve more of their income, and as a result, they may be more successful in the long run. You do have to pay monthly administration fees when you do a ROBS, but compared to a loan the monthly fees are about 11x cheaper! This sets you up for a greater chance at long-term success than other financing methods.
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.
Think about your daily routine, you might stop at a coffee shop in the morning, perhaps you workout at the gym in the afternoon or go for dinner with friends in the evening. Every place that you visit, and every business you connect with during that day, exists because of an idea and an entrepreneur.  Whether that entrepreneur comes from a family of business owners, or is starting out on their own with no previous experience, running their business requires a set of key skills.  But what are the skills you need and how do you acquire them?

Proof of ability to pay: As Ali told me, banks want to be sure you’re positioned to make the loan payment on time each month. You’ll need to present detailed financial statements showing that your income is at least 1.25 times your operating expenses, including the new repayment amount. For example, say your business makes $15,000 a month and your current expenses are $10,000. With the loan repayment added to your operating expenses, you need to be sure your income still exceeds the recommended 1.25 threshold.


One type of financing you'll want to think twice about is a home equity loan. While you'll be personally responsible for repaying any loan your business takes out if you are a sole proprietor or a co-signer, a home equity loan carries a level of risk that unsecured debt doesn't. Your credit could be hurt if your business doesn't repay money you borrowed, but your house isn't at risk in most circumstances unless you've taken a home equity loan.
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.
Hi, I am really trying to start my own trucking company doing hot shot services. I know plenty companies that would let me handle their needs but with the cost of living being so high in the city it makes it so difficult to save money to get started with bills and child support. If anyone knows anybody that could help me get a small business loan I would gladly appreciate it.

You should approach small-business-loan shopping just as you would shopping for a car, says Suzanne Darden, a business consultant at the Alabama Small Business Development Center. Once you determine which type of lender and financing vehicle are right for you, compare two or three similar options based on annual percentage rate (total borrowing cost) and terms. Of the loans you qualify for, choose the one with the lowest APR, as long as you are able to handle the loan’s regular payments.

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