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.
Lenders prefer financial statements that have been audited by a certified public accountant (CPA). But many small businesses don’t want to incur the costs of an audit, so one alternative is to have the financial statements “reviewed” by a CPA (which is cheaper and faster). However, some lenders may not require either audited or reviewed statements.
ApplePie currently has partnerships with 42 franchises, such as 7 Eleven, Dunkin’ Donuts, Jimmy John’s Pizza, and Wetzel’s Pretzels. Other franchise brands can get loans through ApplePie, though the process might take a little longer. ApplePie offers loans for both new and existing franchises, including franchise startup loans, loans to purchase an existing franchise, franchise equipment loans, franchise refinancing loans, and more.
In addition to serving as associate chair, Eddie is a principal lecturer for the highly ranked Supply Chain Management program in the W.P. Carey School of Business at Arizona State University. Eddie has taught over 30,000 students in person and millions more online via videos and digital textbooks. His digital content is used by both top-ranked universities and Fortune 500 companies around the world. He has also provided consulting services for companies in the energy, publishing, retail, technology, global health, and agriculture industries. Eddie likes to spend his spare time on a yoga mat.
Congress passed the Commercial Motor Vehicle Safety Act of 1986 to ensure that drivers of commercial motor vehicles are qualified to operate those vehicles. States have the right to issue a driver's license, but they must meet minimum national standards when issuing a commercial driver's license. The Commercial Driver's License (CDL) Program places requirements on the commercial motor vehicle driver, the employing motor carrier, and the states.
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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We’ve touched on a lot of different topics, of course, and I’ve linked to more tutorials so that you can dig into the details in each area. I’d encourage you to read some of those tutorials to go deeper into the key subjects, and to subscribe to our newsletter (there’s a form down in the footer) to stay up to date with the latest business tutorials published here. We've got plenty more on the way!
Bank loans are a great option, but before you go that route, make sure you’ve done your market research and can demonstrate that your business will do well in your area. If you haven’t had any luck getting loans from traditional lenders, look for a lender that offers SBA-backed loans, since they’re geared specifically to the needs of small businesses and are only open to those who can’t get funding elsewhere. Other financial options include online alternative lenders, which may be less restrictive in who they approve, but also tend to charge higher fees and rates.
5. Social Media: Depending on your type of business, you will want a social media presence. LinkedIn, with more than 380 million members, is regarded as the business site for connecting with other businesspeople and offers excellent posting features for articles and blogs. Facebook is more of a social friends site than a business-focused site, but it’s also an excellent tool for “getting your word out” to your friends and customers. Both Linkedin and Facebook allow you to set up a commercial page for your new business.
He is a nationally recognized speaker and blogger on the topics of leadership, communications, decision-making, problem solving, and other critical business skills. An honor graduate from West Point, Mike served in the US Army as a combat arms officer. Before founding his own company, he was an assistant professor at Duke University, a consultant at McKinsey & Company, and an executive at Capital One and Scotts Miracle-Gro. He is the author of One Piece of Paper: The Simple Approach to Powerful, Personal Leadership (www.onepieceofpaper.com), Lead Inside the Box: How Smart Leaders Guide Their Teams to Exceptional Results (www.leadinsidethebox.com), and The Elegant Pitch: Create a Compelling Recommendation, Build Broad Support, and Get it Approved (www.elegantpitch.com). Mike's blog and the programs he teaches can be found at www.thoughtleadersllc.com.
Guidant is our recommended ROBS provider. Guidant has helped over 10,000 businesses and facilitated over $3 billion in small business financing since 2003. They are also the only ROBS firm we know of which guarantees access to outside independent counsel during the ROBS setup process, which can help you objectively evaluate if ROBS is a good decision for the franchise you are buying.
If you are using the web to help you acquire a loan, beware of "Free" services, sites not certified by TRUSTe or sites with poor Better Business Bureau ratings. These sites may just want your contact information which they then sell to brokers and lenders. It is not a very efficient way for you to get financing and may lead to wasted time, money and calls from unsavory and unqualified sources. Also, make sure there are no hidden fees that either you or the lender will need to make - or guarantees that you will receive a loan.
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.
A franchise is a business that sell the rights to use its logo, name and model to individual entrepreneurs or a group of individuals working in partnership. Franchisees are required to make an initial upfront payment to begin the business, and are typically expected to pay ongoing royalty payments to continue to use the business’s branding and benefit from its brand-wide marketing efforts.
Offering medium-term installment loans with repayment periods as long as 5 years, Funding Circle is a lending partner for established franchisees with a strong credit history. Specifically, you’ll need to be a franchisee with a business at least two years old and have a credit score of at least 620. For qualified applicants, Funding Circle has the advantages of offering faster funding than a bank loan would, as well as offering relatively low rates and fees.
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.
4. You get tax benefits. Oh yes. This even applies to freelancers. Depending on the type of business you register as, you could write off a number of your expenses including travel, telephone bills, food, portions of repayments on things like cars, and so on. And, depending on the business you start, there may also be various government incentives. If you’re unsure about what to do and how to register, I strongly advise speaking with your accountant about the tax benefits you could be eligible for.
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.
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.
The ROBS option allows you to use funds from your retirement savings to finance your franchise without paying early withdrawal penalties and taxes. This can be an attractive option for franchisees that struggle to get traditional loans and are comfortable with some amount of risk. Those with substantial retirement savings may feel most sanguine removing a portion of those funds for this purpose.
Banks and credit unions are traditional sources for small business loans, and they’re a good place to start. Especially with small institutions, you’ll be able to meet with a lender who can guide you through the process. Larger banks might take a more hands-off approach. To improve your chances of getting approved, ask about SBA loans, which reduce the bank’s risk and feature interest rate caps. The loan process at banks and credit unions can be slow, so be prepared for a long process and a thorough review from the bank.
StreetShares is dedicated to helping U.S. military veteran entrepreneurs get funding for their small business ventures, which is why it is a good place to look if you want to start a small business and you’re a veteran. It’s free to see if you qualify for a loan, which is offered in terms of three months to three years, for up to $100,000. Businesses must be at least one-year-old or have at least $100,000 in revenue to qualify. You also must be a U.S. citizen and have decent credit.