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.
Trade Secrets. Trade secrets can be a great asset for startups. They are cost effective and last for as long as the trade secret maintains its confidential status and derives value through its secrecy. A trade secret right allows the owner of the right to take action against anyone who breaches an agreement or confidential relationship, or who steals or uses other improper means to obtain secret information. Trade secrets can range from computer programs to customer lists to the formula for Coca-Cola.
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.
If you own an existing franchise and are looking for working capital financing, then you’ll likely have even more options than you had when you started your business. These loans can be used to fund any business activity, such as to make payroll or to make equipment purchases. The table below shows some of the best options for working capital franchise financing and who each might be a good fit for.

If you have all of the answers above, and are still unsure of what to do then we suggest working with your franchisor to find the best option for your new business. This can be the best place to start when searching for franchise financing, because they’re very experienced with where other franchises like yours have gotten their financing from.The franchisor also has a vested interest in you being able to purchase the franchise and will often provide some kind of help.
Despite the relatively easier access to capital that a franchise owner enjoys, there are many different elements to think about before purchasing a franchise. Each franchise is operated differently and will come with its own set of operating and start-up costs. When considering pursuing franchise business financing, here are a few things for you to think about:
3. Office Space. Even if 52% of all small businesses are home-based, that does not mean you need to look like you work from your home. Customers looking at an office address can usually tell the difference between a professional address and a home address. Also, if you’re meeting with clients, you’ll project a more professional image if you meet in an office setting versus a home office. For this reason, consider signing up with a fractional executive office service.
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A franchise gives you the opportunity to have your own business with the safety net of a proven business model. However, the costs of starting and running a franchise can be substantial. The two best financing options to start your franchise are Rollovers for Business Startups and SBA loans. If you’re not sure where to begin you should reach out to your franchisor for help in the process because they should have experience with your specific franchise.
This option is less likely to work out for those with bad credit because traditional lenders have limits on who they will finance. That said, it isn’t impossible. Your interest rate will however be higher than a standard rate and more collateral will probably be required of you than a traditional recipient. If you think you may still qualify, take a look at some of the loan options offered by the 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.”

SCORE.org conducted research in 2015 that studied business growth in the United States between 1997 and 2014. They found a 67.8 percent increase in the number of women-owned businesses, compared with a 34.4 percent increase in men-owned businesses. The study also found a huge growth in the number of businesses run by women of color, up an incredible 215.7 percent, with revenues increasing by 193 percent. Latino-run small businesses also saw a massive increase, with small business ownership growing at a rate of double the national average.
In his courses, Drew merges the theory taught in a traditional classroom setting with more than three decades of experience, providing a real-world marketing and innovation experience. Drew's earned three prestigious teaching awards and is honored to have been a guest lecturer at Columbia University, Yale University, the Wharton School of the University of Pennsylvania, the University of Michigan, the University of Chicago, the Kellogg School of Management at Northwestern University, and Duke University.

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.

It is important to protect your company’s intellectual property (IP). Ever wary of minimizing burn rate, startups may be tempted to defer investment in intellectual property protection. To those who have not tried to protect intellectual property, it feels complex and expensive. Too often, startups end up forfeiting intellectual property rights by neglecting to protect their ideas and inventions.
If you are an expanding business and need money for relocation and/or renovation, you’ll be looking for a term loan, which is essentially a lump sum of cash that will be paid back within a set amount of time. Depending on what you expect for the long-term when you are in a growth stage, you may be looking for investors rather than lenders at this point.
“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.”
Information and views are general in nature for your consideration and are not legal, tax, or investment advice. Wells Fargo makes no warranties as to accuracy or completeness of information, does not endorse any non-Wells Fargo companies, products, or services described here, and takes no liability for your use of this information. Information and suggestions regarding business risk management and safeguards do not necessarily represent Wells Fargo's business practices or experience. Please contact your own legal, tax, or financial advisors regarding your specific business needs before taking any action based upon this information.
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.

“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.”
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.
Many banks and credit unions offer financing for franchise purchases, so be sure to compare any franchisor lending rates and terms with these. When you approach a bank, be prepared to disclose all your financial information. While your credit rating is important, you’ll also need to provide a personal financial statement, copies of tax returns and information about the source of your down payment funds.
He is president of Toister Performance Solutions, Inc., a consulting firm that helps companies improve customer service. Jeff has appeared on numerous lists of top customer service experts including Global Gurus' World's Top 30 Customer Service Professionals, ICMI's Top 50 Thought Leaders to Follow on Twitter, and HDI's Top 25 Thought Leaders in Technical Support and Service Management.

As you consider financing options, make sure you get the best deal overall for your business. This means you'll need to compare interest rates, repayment terms, origination costs, and whether pre-payment penalties apply. By looking at the total cost of the loan, as well as whether monthly payments are affordable, you can secure financing that works for your organization. 
Now that you have completed our QuickBooks Online tutorials, you should be convinced that you don’t have to be a certified public accountant or have an accounting background to learn how to use QuickBooks. You should also know that QuickBooks is a much better solution than using a Microsoft Excel spreadsheet to keep track of your income and expenses.

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:
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.
A microloan is similar to a traditional bank loan, but they often come from alternative lenders like credit unions. A microloan tends to be easier to get for those with subpar credit because the loan amounts, as the name indicates, are small, typically fifty thousand dollars or less. Because of this, the credit requirements for these loans are also lower. If this amount of funding suits your needs, this is a good option. The SBA has a microloan program, and there are several alternative lending options such as Prosper and Zopa.
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