We also specialize in opening new franchise locations. Some of our franchise clients have used franchise financing to cover franchise fees, pay for new equipment upfront, or prevent weekly deductions from damaging profits during slow or busy periods. Franchise financing can act as a cushion for monthly expenses and make it possible to grow existing locations on schedule after opening new ones.
A lender is primarily concerned about the ability of the borrower to repay the loan. To the extent that a security interest can be given to the lender on company assets (company equipment, property, accounts receivable, etc.), the borrower should be able to increase its chances of getting a loan on favorable terms. Some lenders may insist upon the personal guarantee of the principal owner of the business. That is best avoided if possible as it puts the owner’s personal assets, and not just the business assets, at risk.
But even if you’re not an internet startup or these techniques don’t feel right to you, you can still take steps to get money coming in quickly. If you run a service-based business, you can structure contracts so that clients have to pay a certain amount up front or at agreed milestones, instead of all at the end. With long-running projects, this can make a big difference to your cash flow. You can also offer special discounts and limited-time offers for people who sign up as early customers.
Our course starts at the very beginning with setting up QuickBooks for your business. We cover how to record your income and expenses, how to manage bank and credit card transactions and how to run financial statements. There are a total of 39 tutorials in our QuickBooks course spanning seven lessons. Each lesson has been broken down into bite-sized tutorials. Each QuickBooks tutorial includes a video where we demonstrate the concepts presented in each lesson.
Do you own a franchise or are you looking to lease a new location for your existing franchise? National Business Capital provides franchise financing and restaurant financing for current franchisees and offers funding programs with a variety of customizable options. Many franchisees use our franchise financing for remodeling, mandatory franchise updates, new location acquisition and equipment purchases, repairs and upgrades.
If you are a person with no credit rating, you will need to establish one before you will be able to get a small business loan. Basically, you establish a credit rating by buying things on credit and paying back the money you owe. Your loan repayment history plays a big part in establishing your credit rating, but all your "credit" dealings make up the history that's used to determine your credit rating.
With the relatively low margins in the restaurant industry, many franchise owners are cash strapped and may even have a turbulent credit history. This is not a problem. National Business Capital considers the big picture so a low FICO score does not pose an immediate disqualification. In fact, the majority of our clients were denied franchise loans from traditional banks before contacting us. Know that National Business Capital offers franchise loans to small– medium- and large-sized businesses nationwide – and works with all types of businesses, no matter what their credit history. Our clients’ franchise financing needs are addressed quickly, efficiently and with a personal touch, regardless of their credit score. Even an open tax lien will not disqualify an applicant.
That is why you should use an administrative service to manage your loan, and give you a professional platform to raise the money and make payments to. This can make it easier for people you know to lend money to your business, and you won’t have to worry about any of the paperwork or tax implications. It could also improve your chances at getting funded.
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.
1. You can do it because others are doing it. Think the country is dominated by big businesses run by people with MBAs? Wrong. 99 percent of businesses in the US are small businesses, and they employ 80 percent of the population! You don’t need any “special” training to run a business. You just need an idea, the desire to learn and adapt, and the ability to take action!
Alternative lenders: Once you have your franchise up and running, you’ll need funding to work through seasonal ups and downs, purchase new equipment and possibly open another location. If you’re still having a hard time finding traditional funding, alternative lenders may help fill the gap. They tend to be quicker than traditional loan providers — some even fund within a day — and have looser qualification standards. However, annual percentage rates for alternative lenders typically are higher, so make sure you review your total cost of borrowing before deciding on a loan.
Looking for a quick and easy way to get growth capital for your franchise? Look no further than Balboa Capital. We can provide you with the franchise finance solution you need, with the flexible terms you want. From franchise re-imaging initiatives to new equipment to property improvement programs, we finance it all… and fast. We have a long track records of success in working with many franchise brands, some of which we are a Preferred and/or Qualified Lender for.
ApplePie Capital (see our review) is an online lender that specializes in franchise financing. Founded in 2014, ApplePie was one of the first online lenders to offer franchise financing. After recently acquiring another franchise lender, ApplePie has expanded its offering to include SBA-backed loans, equipment loans, and conventional loans, in addition to its original “core” 3-7 year loan.
There are sources of startup money that may not be as obvious to franchisees that can be helpful. Using equity from a home loan or a 401(k) plan, can provide a kick-start to your business if conventional sources of financing are not available. However, those products may not be optimal over the long run when compared to loan products specifically geared to funding a small businesses.
Type of loan. Many types of business loans need to be secured by collateral, whether that’s by your mortgage, investment accounts, vehicle, life insurance or other assets. You may find that while you still need to secure them, SBA loans come with better interest rates and requirements that aren’t as strict as other financing options. The fact that they’re guaranteed for up to 90% of their amount by the government gives lenders the confidence they need to make offers to customers who may be more risky borrowers.
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.
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.
4. Set up and claim your business online. Whether you get on board or not, information about your business is and will be on the internet. Wouldn’t you rather proactively control what people read or see about your business when they Google it? Do a search on different browsers to see what information you see about your company and then claim or create a listing for your business.
Dana has worked on domain name disputes, beginning with complex multiparty cybersquatting actions in 1999 prior to the adoption of the Anticybersquatting Consumer Protection Act. Dana's trademark work has included the brands of many Las Vegas resorts, such as Bellagio, Mandalay Bay, Wynn, Palms, Treasure Island, Station Casinos, Golden Nugget, and Stratosphere. Dana has also worked on hundreds of trademarks for noncasino clients, including Sunbelt Communications, Teligence Communications, University of Nevada–Las Vegas, HyLoft, iGolf.com, and many others.
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.
Various financial aid programs help certain types of businesses and borrower start up franchises. For instance, some companies have programs designed to attract women and minority candidates. Many others offer discounts on franchise fees for veterans who are interested in franchising. You can find a list of options in the International Franchise Association’s VetFran Directory.
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.
“ApplePie Capital can accelerate the growth of franchisees because we start by spending time with the franchisee up front to assess their situation, and then identify the best financing options to reach their short and long term goals. Sometimes that will be SBA, and sometimes it will be other options that the local bank doesn’t offer. And unlike the local bank, ApplePie knows the brand metrics. We can underwrite the loan ourselves for our core product, or can educate our lender network on the brand so the franchisee doesn’t have to.”
In addition, the franchise industry is also experiencing a growth in companies dedicated to helping franchise owners secure financing. Two such firms are BoeFly (which matches borrowers to lenders online) and Franchise America Finance (who provides custom lending solutions for franchisees and works with franchisors such as The UPS Store, Popeyes, and Jersey Mike’s).
One noticeable trend in most businesses of all kinds today is technology. Workers and business owners cannot deny how it has influenced and advanced the world of commerce. In particular, technology has made it easier for franchises as they need sophisticated systems to manage the complexity of their trade. By their size, even the smaller franchises require this approach. Thus the most significant concept observed among franchises is software that is not installed on a computer, but instead consists of the web. The point of this approach is to take all the software programs usually equipped with a company’s personal computers and move them to the internet. There, they are presented in a single and secured environment accessible from any Internet-connected device, be it a tablet, computer, or phone. Examples of this development can be found with software solutions such as Nextstep Systems, Hello Scheduling, VST Inc, and Steller Restaurant Solutions to name a few. Still, internationalization of franchises continues to be a strong trend within the industry. Many countries are always willing to pay large amounts of money to use western trademarks along with the training and knowledge that come with the territory. Over 400 franchises are operating internationally, proving to be a thriving option. Furthermore, the Franchise Trade Commission also facilitates business deals for American companies abroad confirming the demand for an American disposition.
Jeff White is a staff writer and financial analyst at Fit Small Business, specializing in Small Business Finance. As a JD/MBA, he has spent the majority of his career either operating small businesses (in the retail and management consulting spaces) or helping them through M&A transactions. When he is not helping small businesses, he spends his time teaching his five kids how to become entrepreneurs.
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: