3 Franchise Financing Options to Power Your Business Ownership Dream

Last Updated on January 24, 2018

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 to accomplish dreams

Top 3 Franchise Financing Options for Business Ownership

  1. 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.
  2. 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 & Services. We empower our clients, instead of restrict them!
  3. 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.

How to Get Franchise Financing Today

Contact the National Business Capital & Services team today to learn more about how we can bring your franchise ownership dream to life or fill out our 1-minute application now. Our approval rate is around 90 percent — which is why when banks usually say no, we say yes!

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

About the Author, Megan Capobianco

Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.