Thousands of people buy a franchise each year to pursue their dreams of independent business ownership. Yet getting the funds to purchase a franchise is one of the most challenging aspects of seeing the dream of ownership realized. Buying a franchise requires significant capital including the cost of the franchise fee, the startup costs of equipment, supplies, and staffing, plus ongoing royalties and advertising expenses. Finding the right franchise funding solution is imperative.
Why Do People Buy a Franchise?
Owning a franchise reduces the risks that face every startup business. The benefits of buying a franchise include using an established business model and a recognized brand name. A franchise offers franchisor training and a uniform operating system, along with ongoing operating support. A franchise also provides group buying services along with advertising and marketing guidance and assistance. In the search for the most suitable franchise to purchase, the costs of the specific franchise and franchise funding should be among the most important starting points.
How to Fund Your Franchise
The sources for franchise funding include:
Franchisor Financing
Many franchised organizations offer some type of financing assistance for their franchise owners. That may be from partnerships with specific lenders or by providing some capital directly from the corporation.
Commercial Loans
Traditional term loans can be acquired from banks or credit unions.
SBA Loans
Will back loans provided by partner lenders who typically have lower rates and better terms compared to traditional lenders.
Alternative Lenders
Offer less stringent lending requirements compared to traditional financing options.
Friends and Family Loans.
This is a common starting point for franchise funding, but it can come with some relationship challenges.
Franchise Financing Specialists.
Financing specialists can offer some exceptional sources of funding.
Seek Professional Franchise Funding Assistance
Contact Skogen Capital Lending, based in Gilbert, AZ for tailored solutions to meet your business needs. We are a nationally recognized provider of business loans, and we provide a wide range of options to provide the best financial solutions possible.