Owning your own business is an exciting proposition. One alternative to building a venture from scratch is becoming part of an existing franchise. Doing this is a great way of assuring you have a solid business plan in place, plenty of advertising, and healthy customer demand for what you’re selling. Nevertheless, becoming a member of a franchise costs money. Here are some ways of obtaining the funding you need to get started.
Depending on various circumstances, it may be possible to get a traditional loan from a credit union or bank. Doing so requires a solid financial history or putting up collateral. Lenders are more likely to finance your endeavor because they know you plan on investing in a business that’s already a success. Of course, not all franchises are widely known. If you’re joining one that’s still emerging, lenders will be less likely to work with you.
The Small Business Administration can be enormously helpful when you’re looking to secure a loan. This government-backed institution is willing to support small businesspersons who are seeking financing. This means that, should you fail to repay what you owe, they’ll step in and fulfill the rest of your financial obligation. You’re still taking a loan with a traditional creditor, but the SBA is adding additional reassurance.
If you’re unable to get financing directly from an established lender, the franchise you’re doing business with may provide an alternative. Most offer debt financing and are willing to structure these loans in multiple ways. They also understand what equipment you need and how much it all costs. Naturally, they’re willing to help you get everything that’s necessary to open your doors. Before cutting a deal, ask about specific terms that apply to your contract and closely examine the repayment schedule. Make sure that the terms you’re committing to are agreeable and easily met.
Less traditional forms of funding are also available. Look at your own assets first. You may have vehicles you no longer want or jewelry that has appreciated. Consider selling these in exchange for backing your dream. Refinancing your home is another option. Think about using credit cards and alternative lenders to get what you require, but use caution as it’s easy to fall into trouble.
Investing in franchises is a smart move for anyone new to entrepreneurship. Still, getting up and running requires money, just like with any other business. Review your options carefully before moving forward.