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.
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.
You need to be prepared for a rejection of your loan, and you need to be prepared to re-work your business plan, save more money or do whatever else the loan officer suggests to secure a loan. It can be hard not to take a rejection personally, but remember that the lender is not rejecting you or your business idea–they are simply rejecting the opportunity to help you finance your business. You need to rework your business plan and/or secure more capital before you try again.
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.
A franchise merchant cash advance (MCA) is a short-term loan that provides capital to franchises that need funding quickly. Approval for a merchant cash advance can take a matter of minutes, and funding can be completed in as little as 24-48 hours. Merchant cash advances work by having a funding company purchase a portion of your franchise’s future receivables at a discount, with an upfront payment to the franchise. After funding the funding company will then collect repayment by splitting each days credit card batches with the franchise.
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 contract is, in essence, a written meeting of the minds. While it is typically drawn up by one party and favors the needs and requirements of that party, protecting them from most (if not all) liabilities, it should initially be thought of as a work in progress that changes and grows as each party contributes prior to signing, after which it becomes an official document. “Consideration,” whether it is monetary or a promise to do work or provide a service by a specified date, is at the root of a contract.
Supporting both the operation and expansion of a growing small business often requires some additional financial support. Getting a small business loan or grant can help you bridge the gap when you need to make capital investments, increase your workforce, or move to a larger space. To help you decide which type of funding might be right for you, here are a few great small business-financing options:
Dana is a founding partner of TechLaw, LLP, where his practice focuses on trademark prosecution and licensing, copyrights, and business transactions. He is also adjunct professor of law at the University of San Diego School of Law, where he has taught IP Survey, and helped launch the IP Law Clinic. His expertise includes a broad base of intellectual property law that covers copyright, trademark, patent, trade secret, and international intellectual property. Dana has filed, managed, and prosecuted thousands of trademarks over the course of his law practice career. He has represented clients in numerous trademark infringement actions, as well as cancellations, oppositions, and appeals before the Trademark Trial and Appeal Board.
Patents. Patents are the best protection you can get for a new product. A patent gives its inventor the right to prevent others from making, using, or selling the patented subject matter described in the patent’s claims. The key issues in determining whether you can get a patent are: (1) Only the concrete embodiment of an idea, formula, or product is patentable; (2) the invention must be new or novel; (3) the invention must not have been patented or described in a printed publication previously; and (4) the invention must have some useful purpose. In the United States you obtain a patent from the U.S. Patent and Trademark Office, but this process can take several years and be complicated. You typically need a patent lawyer to draw up the patent application for you. The downside of patents is that they can be expensive to obtain and take several years,
Stock Option Plans are an extremely popular method of attracting, motivating, and retaining the best employees, especially when the company is unable to pay high salaries. A Stock Option Plan gives the company the flexibility to award stock options to employees, officers, directors, advisors, and consultants, allowing these people to buy stock in the company when they exercise the option.
Microlenders: If your company is especially small, you may need to opt for a microlender. These are non-profits that typically lend short-term loans of less than $35,000. They also have a much higher APR than bank loans but may be useful by helping you bridge a temporary cash-flow gap. Microlenders require detailed business plans and financial statements, so be prepared for some serious paperwork.
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.
Ideally, your Instagram profile picture should be an image of your logo and be the same one displayed on your website and other social media platforms. For the mobile app, your profile picture should be a minimum of 110 pixels width x 110 pixels height. Your picture will be shown in a circle, so your logo has to be clear when cropped. Have a look at how Deputy’s logo is clearly displayed on our Instagram account.
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.
Keep in mind that whenever you’re applying for a business loan, whether it’s for start-up costs, working capital, or real estate, it’s a good idea to complete more than one loan application so you can compare rates and terms. Most lenders will only do a “soft” pull on your credit in the pre-qualification stage and will not do a hard pull (the kind that dings your credit score) unless you accept the loan offer.
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?
This website contains information concerning the franchise businesses on our platform, including a franchise disclosure document, that are either provided by or based upon information obtained from third parties. We have not independently verified the accuracy or completeness of the information contained in the franchise disclosure documents or information obtained from third parties. We do not endorse or adopt this information, and we do not make representations as to the accuracy, completeness, suitability or validity of any information obtained from third parties and will not be liable for any errors or omissions in this information or any damages arising from its display or use.
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.
Alternative business lenders are comprising a growing part of the financing industry as bank loans become increasingly hard to get. Franchise owners benefit from alternative franchise loans, which have less-strict borrower qualifications than traditional business or SBA loans, and also put the funds in your account a lot faster. Generally, alternative loans have higher rates than bank loans, but they represent an important source of capital to many small business owners, including franchise owners, who would not otherwise qualify for financing. Moreover, some of the best online lenders offer rates that are on par with big banks.
After speaking with several Brokers to help with our SBA loan, Karen was the only one who took her time and explained in full detail what our best options would be. The process was so easy, in less than 48 hours after submitting the application to the Bank we had a firm approval and we we’re ready to close on the loan in less than 10 days. I worked in the Mortgage Industry for 20 years and I’m VERY impressed with the service Karen provided us. This couldn’t have been any easier!!!!!!!!
The second step is to be strategic about how and where you apply for a loan. Key targets for your loan application would be your own bank, local business lenders and national lenders. Within that group, it is also important to target lenders who may be familiar with the brand and have made loans to other franchisees. That said, don't use a shotgun approach and apply everywhere. This approach can lead to inefficient use of your time and money as the process can lead to several declines from lenders as you blindly submit applications. This process can take up to 120-190 days before you even get funded. Additionally, some lenders charge application fees so it can get expensive, but more importantly, a lender may do a "hard" credit pull on you when you apply. Multiple hard credit pulls within a timeframe will actually hurt your credit score and decrease your ability to get a loan. One alternative is to use a service like BoeFly, which puts you in the driver's seat. It allows lenders to evaluate your loan package and credit and engage with you directly without officially applying at the bank. Only once it seems like it may be a good match will the lender issue you a proposal or term sheet on the financing and then officially invite you to apply at the bank - thereby saving your credit score and time and money. Unlike other marketplaces and "connecting" websites, BoeFly can significantly reduce your time of origination by up to 75% as well as your costs.
Traditional bank options include term loans, lines of credit and commercial mortgages to buy properties or refinance. Through banks, the U.S. Small Business Administration provides general small-business loans with its 7(a) loan program, short-term microloans and disaster loans. SBA loans range from about $5,000 to $5 million, with an average loan size of $371,000.