Fees and costs. Origination, underwriting and early repayment fees are typical costs that you could see. If a lender provides an APR, it includes the interest rate plus any upfront fees. Early repayment can be a conditional fee and is not reflected in the APR, so it’s a good idea to carefully read through the terms of your offer before accepting it. Learn more about business loan costs.

For the limited time beginning with applications dated July 9, 2018, and ending with applications dated on or before December 31, 2018, the interest rate on cash advances and purchases made on your Business Advantage Credit Line account approved for not less than $10,000 and not more than $100,000 is a fixed introductory interest rate of 2.99% for the first 12 billing cycles from the date your Credit Line account is opened. After that, the interest rate will be a market competitive variable interest rate, based on the Prime Rate, your creditworthiness, your business relationship with Bank of America, and the approved amount for your Credit Line account. Excludes secured loans and secured lines of credit, and unsecured term loans. Origination fee of $150. Annual fee of $150 is waived for the first year of your Credit Line account, and assessed annually thereafter. Enroll in Autopay to make payments on your Credit Line account within 90 days from date it is opened and get a $50 credit to your Credit Line account. The $50 credit will be applied to the account after the origination fee is posted. Other restrictions may apply. Subject to credit approval.


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.
We have successfully provided franchise loans and restaurant financing to such recognizable and far-reaching brands (but not limited to) as Subway, CiCi’s Pizza, Meineke Car Care Center, Golden Crust, Golden Corral, Firehouse Subs, Kentucky Fried Chicken, Domino’s Pizza, IHOP, Burger King, Jack in the Box and Quizno’s, to name a few! Let’s continue the success story that your long hours and hard work have brought about and take your business to the next level!
While they might not be as plentiful, businesses in rural areas are just as important as businesses in urban areas. The USDA’s Rural Development loan program is dedicated to helping businesses in rural areas get started and grow. Like the SBA, this loan program does not lend directly but rather guarantees loans, which allows entrepreneurs access to a larger line of credit than their personal credit would allow so they can successfully build their business.
At the early stages of your startup, you will likely want to have a small employee team to minimize expenses. A good way to fill in for specialized expertise is to use freelancers or consultants. That way, you avoid taking on employee costs and benefits payments. And there are a variety of sites that can help you access freelancers, such as Freelancer.com, Guru.com, and Upwork.com.
Bio – Your bio should describe your business and display your brand personality. You should also use the 150 characters to explain what users can expect from your Instagram profile. Try using emojis and hashtags in your bio to add personality and for users to find your brand. See how Target makes use of emojis and hashtags to highlight its competition.
For existing franchises looking for working capital, another form of alternative financing comes from monetizing the franchise’s balance sheet to obtain funding. Using the franchise’s commercial real estate, or by tapping into the franchise owner’s personal real estate, an asset based lender can collateralize the real estate and provide working capital up to 90% of the real estate’s equity.
You do need to create a list of prospects before you reach out. This will help you focus on targeting the right areas and the right people. Do your research. If you’re selling a high-end product, you don’t want to target/cold-call customers in a low-income neighborhood. And, if you’re selling a product suited to children, should you really focus on the section of town that all the college students live in?
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.

Business financing options other than traditional loans or lines of credit include personal loans for business or business credit cards. A personal loan for business is a good option if your business is still young and you don’t qualify for traditional financing. Personal-loan providers look at your personal credit score and income instead of your business history.
Some things we like about StreetShares include its excellent customer service, easy application, competitive rates, and speedy time-to-funding. You don’t even need to put up any business collateral for a StreetShares loan (though you will need a business guarantor who is willing to essentially “co-sign” your loan). Another thing that makes StreetShares special is that franchise owners who are also veterans and/or who have an interesting business backstory are preferred. See our StreetShares review to learn more about this alternative lending leader.
In case of microloans or loan guarantee program which is the 7a term loans, we can show how you can get approved to get a small business loan without collateral. Unsecured business loans are rare but possible through the SBA. In case of disaster recovery loans, the damaged property or asset will be used as collateral. In fixed asset loans backed by the SBA, the procurement itself is a form of security considered by the lenders.

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.
2. You can do it because there is a business appropriate for just about everyone’s interests, experience, passions or expertise. “Starting a business” really only comes down to figuring out your business idea, doing your paperwork, and sorting out the money. Given the number of funding resources available today, you shouldn’t have too much of a problem getting that initial startup cash, especially if you focus on a lean business model or MVP route to market.
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.
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.
The brand you choose to work with may provide upfront estimates of how much it will cost to start a new business and can also give you information on monthly and year-over-year revenue goals and expected progress. This information, if available, is often found in Item 19 of the FDD. However, a franchise is not required to provide this information in their FDD - so speaking with several existing franchisees is always a wise choice. Based on this data and your own projections make sure you understand when your business will break even factoring in both expenses as well as the loan payments and always assume there will be unexpected costs. When determining your loan amount make sure to include working capital to get you through the ramp-up period of the business until the business can support expenses and loan payments. When lenders review your loan application they will pay attention to several key things, but 2 items that you should be aware of are Loan To Value (LTV) and Debt Service Coverage Ratio (DSCR). LTV is a measure of the total value of the loan amount compared to the collateral pledged. Lenders will look at the collateral as a secondary source of repayment of the loan and in many cases with a start-up financing may look for collateral to cover the full loan. In cases where there is not enough collateral the lenders will look to other strengths of the deal. DSCR is a measure of the cash generated by the business available for the loan payments. The higher the DSCR, the better because in the bank's view there will be a cushion of cash just in case there are unforeseen problems or slow periods for the business. A lender will typically look for a minimum DSCR 1.20x or more. If your projections don't show the ability to service debt lenders may shy away from your loan request so it is important to understand the accuracy of your projections.

We also specialize in opening new franchise locations. Some of our franchise clients have used franchise financing to cover franchise fees, pay for new equipment upfront, or prevent weekly deductions from damaging profits during slow or busy periods. Franchise financing can act as a cushion for monthly expenses and make it possible to grow existing locations on schedule after opening new ones.
Tom's roles have included time as a writer, editor, journalist, videographer, presenter, educator, web designer, layout artist, and public relations executive. Since 2006, he's freelanced for publications and private clients including the Association for Computing Machinery (ACM), the Institute of Electrical and Electronics Engineers (IEEE), Apple, Nature.com, and the San Francisco Chronicle. A frequent traveler, he moved from his native US to the Netherlands in 2016. Connect with him at http://tomgeller.com.
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.
Business financing options other than traditional loans or lines of credit include personal loans for business or business credit cards. A personal loan for business is a good option if your business is still young and you don’t qualify for traditional financing. Personal-loan providers look at your personal credit score and income instead of your business history.

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.
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.
Sometimes it makes sense to tap 401(k), Individual Retirement Account or other retirement funds rather than seek a loan. But rather than just taking an early withdrawal, which may be subject to taxation, you may want to consider setting up a C corporation that will own and operate the business. Then roll over money from your self-directed retirement account into that corporation’s profit-sharing plan and direct that those funds be invested into the franchised business. But this is a risky option: If the franchise fails, your retirement fund can be wiped out. Check with a professional on possible tax implications, and consider the tradeoffs carefully.
Remember that a business is franchised for two reasons: to expand the business and to raise capital. So if you have a reasonably good credit record and pass all the financial requirements, most franchisors will bend over backwards to get you on the team. The help that franchisors provide to help you get financing usually includes assistance with business plans and introductions to lending sources. In many cases, franchisors serve as guarantors of loans you take out.
Follow – After you’ve set up your account and have a clear branding strategy in place, it’s time to start working on gaining visibility on Instagram. You should follow as many people who are relevant to your business as possible. For example, influencers, brands with complementary products and past customers. Read this blog for a guide on how to use social media influencers to promote your business.
One of their loan programs is the SBA 8(a) business development program. According to their website, SBA’s 8(a) business development program is specifically dedicated to providing business assistance to entrepreneurs who are members of a socially and/or economically disadvantaged minority group who need help accessing mainstream economic capital. This program is divided into two sections and requires a nine-year commitment. The first four years are dedicated to development, and the remaining five years are a transition stage.
Chris Guillebeau is a writer, entrepreneur, and traveler. His latest book, The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future, is now a New York Times bestseller. During a lifetime of self-employment and ventures ranging from online publishing to volunteer work in West Africa, he has visited nearly every country on earth before the age of 35. Host of the World Domination Summit, an international gathering of creative people, Chris is focused on encouraging individual quests while also “giving back.” His main website, ChrisGuillebeau.com, is visited by more than 300,000 people a month.
James D. Stice, PhD, is the Distinguished Teaching Professor of Accounting in the School of Accountancy at BYU. Professor Stice has been at BYU since 1988. He has co-authored three accounting textbooks and published numerous professional and academic articles. In addition, Professor Stice has been involved in executive education for Ernst & Young, Bank of America Corporation, International Business Machines Corporation, RSM McGladrey, and AngloGold Limited and has taught at INSEAD (in both France and Singapore) and CEIBS (in China). He has been recognized for teaching excellence by his department, his college, and the university. Professor Stice currently serves on the board of directors of Nutraceutical International Corporation.

The Louisiana Secretary of State, Louisiana Department of Revenue, and Louisiana Workforce Commission are working to make it easy for you to manage your Louisiana business filings and tax account registrations from one location―the Louisiana geauxBIZ portal. geauxBIZ can help you find resources to help plan, make key financial decisions, and complete legal activities necessary to start your business. You can also use geauxBIZ to produce a list of possible federal, state and local licenses and permits required for your business, to reserve your new business name, and to complete your new business filing. If you want to do business in Louisiana, visit geauxBIZ to get started!
Outside of the typical startup costs, there are different costs that are unique to franchise businesses. First is the franchise fee, an upfront fee to the franchisor for the right to use the company’s branding and model. It can be paid in a lump sum or in installments, and varies widely by industry and company. It will likely to be at least $10,000 – sometimes substantially higher – and is typically nonrefundable. Franchisors are also likely to charge recurring royalty and marketing fees – usually arranged as a percentage of sales at the franchisee’s store – usually 4 to 8 percent for royalties and 2 to 4 percent for marketing.
2. You can do it because there is a business appropriate for just about everyone’s interests, experience, passions or expertise. “Starting a business” really only comes down to figuring out your business idea, doing your paperwork, and sorting out the money. Given the number of funding resources available today, you shouldn’t have too much of a problem getting that initial startup cash, especially if you focus on a lean business model or MVP route to market.
No business lender is perfect. A lot of them try (and get pretty close) but sometimes, the biggest advantages can lead to polarizing disadvantages. Take OnDeck Capital, for instance. This online business lender is widely-praised by all kinds of small business owners, and rightfully so. OnDeck’s application requires minimal paperwork, you can get funded in […]

A ROBS let’s you fund all, or part, of your new franchise with retirement savings (401k, IRA, 403b, etc) without paying early withdrawal penalties and taxes. If you have at least $50,000 in your eligible retirement account a ROBS can help you fund 100% of your franchise, be combined with seller financing, or be used as a downpayment for an SBA loan. Learn more by speaking with our recommended ROBS provider, Guidant, who offers an initial free consultation.
As the saying goes: "The only certainties in life are death and taxes." Unfortunately, this is also true if you start a business in Australia - you absolutely must register for the correct taxes to avoid any potential legal implications. The taxes you must register for are dependent on the type of business you choose to start, with some applicable to every type and others only mandatory for certain types.
In most cases, maintaining a good business credit report is enough to qualify. In addition, it instills confidence not only in the lender, but also in you. There is at least one SBA office in every state in America. If you contact them regarding the startup status of your business model and plan, you can get started on a government small business loan that will give you the financing to make your dreams a reality.
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