3 Ways that Franchise Loans Can Launch & Grow Your Business

Last Updated on November 3, 2017

The number of franchises in the U.S. is on the rise — and it’s easy to understand why. Implementing a proven business model, leveraging established brand equity and marketplace visibility, and getting ongoing support on everything from supply chain management to marketing are all major assets.  

franchise loan to launch and growing a business

3 Ways that Franchise Loans Can Launch and Grow Your Business:

  1. Franchise Loans Give You Essential Working Capital Flexibility: Franchise consultants and experts often disagree on various things — such as what sectors are growing, what brands have the most value and so on — but they all agree that exhausting all available capital to purchase a franchise is a major, and often fatal mistake. This is because there’s more to purchase than just the franchise itself. For example, there’s space to rent and renovate, equipment to lease or purchase, staff to hire and marketing campaigns to run. Franchise loans give you the essential working capital flexibility you need to cover these additional costs, so you can hit the ground running from day one vs. scramble to raise more funds in a short period of time, which is risky, stressful and costly.
  2. Franchise Loans Enable You to Exploit Opportunities: Launching a franchise isn’t all about covering expenses: it’s also about exploiting profitable opportunities. For example, potential strategic partners may reach out to build referral or marketing relationships, key real estate or assets (e.g. equipment, furniture, IT systems, etc.) may suddenly become available due to a liquidation, or you may get a last-minute invitation to showcase at a high-profile conference or trade show. With franchise loans, you’ll be able to jump on these time-limited opportunities instead of sitting on the sidelines and watching your competitors surge ahead.
  3. Franchise Loans Enable You to Refinance or Recapitalize if You Need Additional Cash: Let’s say that you obtain a $200,000 franchise loan that will be repaid over 62 months (5 years). What happens in year 2 if you need additional funding? In most cases, you can refinance your franchise loan or recapitalize your debt. With the former, you simply replace your initial loan with a new one (i.e. one with a greater value and probably a longer term). With the latter, you reorganize your capital structure by tapping into your equity and replacing it with debt.

Apply for Franchise Financing Today

Franchise success isn’t an out-of-the-box proposition or promise. It takes dedication, determination, commitment and hard work. However, as millions of franchise owners across the country will gladly confirm, the rewards are enormous both financially and personally. In fact, the only regret they have is they didn’t launch a franchise sooner. Fill out our 1-minute application online today to get started!

Additional Information

To learn more about how our franchise loans can help you turn your franchise ownership dreams into reality, download our free eBook “7 Profitable Opportunities that You Could Miss Without More Business Funding”. You’ll discover the most profitable opportunities, including franchising your business or buying a franchise of your own, that your business can take to grow. Plus you’ll explore how business funding can help you make the most of each opportunity.

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.