StreetShares (see our review) is a P2P lending service that brings together business owners and investors. StreetShares is especially geared toward veteran-owned businesses. Indeed, owning a franchise can be a good transition for veterans transitioning to civilian life. However, even if you’re not a veteran, you can still use this innovative loans marketplace to get an unsecured short-term business loan or line of credit of up to $100,000. You will need to have been in business a year, or in some cases only 6 months, in order to qualify.
Your answer needs to be more detailed than simply “I don’t have any money.” What specifically will you be using the loan for? Start up? Day-to-day management? As a safety net? To answer this question, you will need to spend a lot of time figuring out your budget along with the amount of money that you realistically can put up as capital. Take your time with this step since it will have a big impact on whether or not you actually get a loan that can cover your expenses.
Our franchise clients have been recommended a variety of business funding programs such as merchant cash advances or short-term working capital loans. Both options can allow you to cover a massive upfront cost, increase staff, launch a local ad campaign or pay a series of coinciding bills. Since profit margins for restaurants and retailers are already on the low side, we can provide the means to make important payments ahead of schedule and lessen the blow from weekly deductions.
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.
A number of costs go into the launching a franchise. Initial costs include paying for professional advisers such as a lawyer to look over contracts and an accountant to advise or manage your finances. You’ll also need to invest money up-front for anything your business will need: real estate or lease payments, inventory, equipment, supplies insurance, licenses, recruitment, employee preparation, and signage. A grand opening event and initial marketing expenses will also add to your startup costs. You’ll also want to account for ongoing expenses such as professional services, supplies, employee pay and benefits, rent or property taxes, utilities and maintenance.
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.
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.