An important step in forming a new business is to determine the type of business structure that you will use. There are several business structures to choose from, including sole proprietorship, partnership, corporation, limited liability company and limited liability partnership. Each has advantages and disadvantages as well as tax consequences of which you should be aware. You must decide which of these structures best suits your business objectives and needs. The Secretary of State cannot advise you on choosing a business structure. For help in making this decision, you may wish to consult a tax practitioner, accountant or attorney. 
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.
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.

General purpose business loans. The most widely used SBA loans, SBA 7(a) general loans can greatly help if you’re investing in a franchise. Because SBA loans are guaranteed by the government, they’re easier to qualify for than traditional bank loans. The amount and rates that you can potentially qualify for may make them worth the extra time and documents needed to apply. Outside of the loan itself, the Small Business Administration offers free tools to help you plan for securing the loan and keep up on your new enterprise once you’ve become a franchisee.
1. Get organized. Getting an organized plan is the first step in any marketing effort. Make one. Start with brainstorming, create themes and transfer action items to a calendar or to-do list. Start small, and try to get a good ROI for everything you do. Create an elevator pitch: What can you tell people about your business, products and services in 30 seconds or less that keeps them interested and wanting more? Get customer input early -- if you are opening a storefront or restaurant, try hosting a soft opening or invitation-only event to get your kinks worked out and your mishaps and mistakes out of the way. Whatever you do, make a good first impression.

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SmartBiz does not originate loans. Rather, it is a service that matches business owners with SBA-preferred banks. If you don’t qualify for an SBA loan, SmartBiz can match you with one of its non-SBA partners to secure a loan. While SBA loans have the lowest interest rates and longest repayment terms — up to 10 years for most loans — you might still be able to get a medium-term non-SBA loan with an interest rate as low as 7.99% through SmartBiz.

1. Get organized. Getting an organized plan is the first step in any marketing effort. Make one. Start with brainstorming, create themes and transfer action items to a calendar or to-do list. Start small, and try to get a good ROI for everything you do. Create an elevator pitch: What can you tell people about your business, products and services in 30 seconds or less that keeps them interested and wanting more? Get customer input early -- if you are opening a storefront or restaurant, try hosting a soft opening or invitation-only event to get your kinks worked out and your mishaps and mistakes out of the way. Whatever you do, make a good first impression.
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.
Plum Alley was founded by Deborah Jackson, who had over two decades of experience raising capital for businesses, in 2012 as a crowdfunding platform for women-run businesses that needed extra funding. In 2015, Plum Alley Investors emerged as a way to connect women-owned businesses with investors who want to invest specifically in women-run businesses. Plum Alley is unique in that their investors are dedicated to investing in women-centric businesses, and they help women gain access to the capital they need.
A franchise ACH merchant cash advance is very similar to a MCA split in that they are both not considered “loans” but are instead the sale of the franchise’s future earnings. The difference between a MCA and an ACH is how the funder is repaid for providing financing to the franchise. As mentioned previously, a MCA lender will collect repayment by splitting merchant processing sales. With an ACH advance the repayment is made by having the funding company take a set amount from the franchise’s bank account each business day until the advance is repaid.
If you can secure a credit card in your company name and make purchases and on-time payments, you can get financing and start building good business credit at the same time. Of course, the credit limit, interest rate, and terms of payment will vary, and each bank or credit union will have eligibility requirements, so this option will not work for everyone.
If you want to separate your personal liability from your company's liability, you may want to consider forming one of several types of corporations. This makes a business a separate entity apart from its owners, and therefore, corporations can own property, assume liability, pay taxes, enter into contracts, sue and be sued like any other individual. One of the most common structures for small businesses, however, is the limited liability corporation (LLC). This hybrid structure has the legal protections of a corporation while allowing for the tax benefits of a partnership.
And don’t forget that unlike their independently-owned competitors, franchise owners don’t get to choose when to schedule expenses or which suppliers to work with. Their business model might have been passed down by the franchisor but it’s up to the franchise owner to figure out how to grow the business without endangering profits or failing to cover mandatory expenses.
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/
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Start by learning about various franchise shops and restaurants in your preferred specialty. If you’re a fan of Panera Bread, for instance, go to the company’s franchise Information page and read up on the opportunity. If you need inspiration, Franchise.com keeps a running list of franchise opportunities, complete with a monthly featured franchise.
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.
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.
Karen Newell at Key Commercial Capital exhibits an exceptional level of professionalism and grit, which is truly refreshing in an industry where both qualities are often lacking among small business funding resources. I love working with Karen because I can rely on her to provide timely, accurate and succinct updates about my funding candidates. I enthusiastically recommend Karen for any and all of your business funding candidates!
Websites like Fundera serve as a marketplace for business owners to find lenders that match their business needs. The company works with every major lender in the United States and matches business owners with an advisor who can help them find the right lender for their business. You can also seek out online funding on your own. Read through reviews on ConsumerAffairs to find an online lender that matches your needs.
Whitney Johnson is a leading thinker on driving innovation via personal disruption and cofounder of Clayton Christensen's investment firm. She is a regular contributor for Harvard Business Review and LinkedIn, and the author of Disrupt Yourself, which Publisher's Weekly called "superb, savvy, wise." Whitney also speaks and consults with Fortune 100 Companies. Recently, her work was recognized by the Thinkers50, which named her as a finalist for the 2013 Future Thinker Award. You can find her at whitneyjohnson.com.
Startups should also understand that the venture process can be very time consuming—just getting a meeting with a principal of a VC firm can take weeks; followed up with more meetings and conversations; followed by a presentation to all of the partners of the venture capital fund; followed by the issuance and negotiation of a term sheet, with continued due diligence; and finally the drafting and negotiation by lawyers on both sides of numerous legal documents to evidence the investment.
If you identify areas of weakness, you’ll need to make a plan for dealing with them. If you don’t have a head for figures, perhaps you could partner with someone who does. Or you could hire an accountant, or improve your own skills by checking out some of our super-simple accounting tutorials or doing other training. If you’re no good at designing websites, hire someone to do it for you.
If you start your company with co-founders, you should agree early on about the details of your business relationship. Not doing so can potentially cause significant legal problems down the road (a good example of this is the infamous Zuckerberg/Winklevoss Facebook litigation). In a way, think of the founder agreement as a form of “pre-nuptial agreement.” Here are the key deal terms your written founder agreement needs to address:
Franchise equipment leasing allows the franchisee to attain needed equipment and machinery to operate the franchise, without paying the full upfront costs. Once the franchise identifies a piece of equipment its looking to obtain, they will apply through a leasing company to purchase the equipment for the small business, and then the leasing company will provide a lease of the equipment for up to 10 years.

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Hashtag – The right hashtags can provide a boost to the visuals on Instagram. Be creative when it comes to hashtags. Try to come up with something that your followers would want to share. It’s best to avoid using just the name of your business as a hashtag. Instead, consider using a word or a phrase that captures your brand. Sprout Social lists some examples of how some big brands have successfully used hashtags.
Franchise equipment leasing allows the franchisee to attain needed equipment and machinery to operate the franchise, without paying the full upfront costs. Once the franchise identifies a piece of equipment its looking to obtain, they will apply through a leasing company to purchase the equipment for the small business, and then the leasing company will provide a lease of the equipment for up to 10 years.

While it can be tempting to pick a lower-priced option to lower your risk, it’s important to make sure you aren’t compromising too much based on finances. Instead, consider a loan or other method of financing that can help you get you started. Some franchising companies run their own franchise financing programs to help franchisees get in the door.


There are more than 28 million small businesses in the United States, making up a whopping 99.7 percent of all U.S. businesses, according to the Small Business Administration. When you consider some of the most popular reasons to start a business, including having a unique business idea, designing a career that has the flexibility to grow with you, working toward financial independence, and investing in yourself — it's no wonder that small businesses are everywhere.
Your eligibility. Each franchisor has its own set of requirements for you to meet, and from there you’ll need to meet the criteria any lenders have. Confirm eligibility with the providers you’re interested in to see whether you meet their minimum standards. If not, you have the option of learning what you can change to make the cut. And keep exploring your other providers.
Borrowers have multiple options for SBA-backed loans, including microloans with a six-year repayment term to allow new businesses to borrow up to $50,000; 7(a) loans that allow companies to borrow up to $5 million; and 504 loans, available for up to $5.5 million for smaller businesses with a net income under $5 million and a net worth below $15 million. 
*Annual Percentage Rates (APR), loan term and monthly payments are estimated based on analysis of information provided by you, data provided by lenders, and publicly available information. All loan information is presented without warranty, and the estimated APR and other terms are not binding in any way. Lenders provide loans with a range of APRs depending on borrowers' credit and other factors. Keep in mind that only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend on factors like credit score, requested loan amount, loan term, and credit history. All loans are subject to credit review and approval.
The staff at Key Commercial Capital was wonderful. They made sure to explain all our options in detail and were always interested in the best for us. They verified our documents before submitting for approval to ensure everything was in order and that the application and closing process was as smooth as possible. They were also very responsive and available at all times. I will certainly be back on the next opportunity.

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.
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