Each year, hundreds of thousands of people from all walks of life and backgrounds bring their business ownership dream to life by purchasing a franchise. If you are thinking of following that well-forged path to personal satisfaction and profitable success, then here are 3 franchise financing options to consider:
Franchise Financing Options: Working Capital Loan
A working capital loan is a term loan that is paid back in regular, fixed installments (typically monthly). Unlike a conventional bank loan, you do not need good credit or collateral, and neither a past discharged bankruptcy or currently open tax lien are usually deal-breakers. Terms usually range from 1-5 years, although most franchisees opt for a longer payback period in order to make their installment payments easier to afford.
Franchise Financing Options: Equipment Financing or Leasing
Getting your franchise off the ground typically means purchasing equipment — and that is where equipment financing or leasing enters the picture. Similar to working capital loans, terms usually range from 1-5 years. It is also important to note that some lenders oblige you to purchase or lease your equipment from a limited pool of vendors. Be assured this is NOT something we do here at National Business Capital. We empower our clients, instead of restrict them!
Franchise Financing Options: Business Line of Credit
A business line of credit gives you instant access to a significant amount of funds to cover unexpected, short-term costs. You are only charged interest on the amount you borrow, and if the line is revolving (as is the case with our offering), then the amount you pay back is immediately available for future borrowing. This is especially helpful considering that most franchises require franchisees to maintain minimum stock and staffing levels at all times.
Contact the National Business Capital team today to learn more about how we can bring your franchise ownership dream to life or fill out our two minute application now. Our approval rate is around 90 percent — which is why when banks usually say no, we typically say yes!