The freedom to be one’s own boss yet work within an already proven business plan draws many to purchase franchise businesses.
For owners of successful franchises who wish to expand or to open another franchise, there are usually three financing options. Franchisees can apply for a traditional bank loan, apply through the Small Business Administration’s (SBA) standard 7(a) loan program, or seek franchise financing through an alternative financing company.
Both traditional banks and the SBA have initial drawbacks in the amount of documentation and paperwork that each requires. Additionally, banks charge application fees and the SBA requires both collateral and personal guarantees.
Loan applications for both include a borrower information form, extensive personal and business financial histories, resumes, profit and loss statements, and several years of income tax returns.
For the SBA loan, a bank must first approve the application. A loan rejection can send an applicant to another bank to restart the entire process. Either way, months may pass before approved borrowers receive their financing.
This will prove frustrating to franchisees, who know that time is their enemy. Quick access to working capital is imperative to take advantage of opportunities such as a prime location before it is leased by a competitor. Many franchisees are bypassing the traditional financing sources and directly seek a trustworthy alternative financing company.
While 2015 statistics are not yet available, FRANdata, the franchise industry forecaster, projected that alternative financing would provide a 4% market share of the estimated $30.1 billion franchises had been expected to borrow during fiscal year 2015. While that percentage may seem small, consider that it amounts to $1.2 billion in financing.
With National’s streamlined and expedited approval process with simplified qualifications, chances are you do qualify! All you need is:
To qualify for franchise loans through National – no minimum FICO score required. This is great news for those with bad credit seeking franchise loans.
However – if you do not meet the above requirements, a FICO score of at least 650+ is needed to qualify.
National offers franchise loans with:
To find the best franchise loan option that best fits your specific franchise needs, use our franchise loan calculator by clicking the link below. Adjust the sliders to determine the best franchise loan interest rates, terms and conditions work for you.
As a trusted alternative financing company, National Business Capital’s goal is to establish strong financial relationships with our clients. We strive to assist them obtain the financing they require to ensure that their franchise businesses continue to thrive.
If you have questions about franchise financing, please give our Business Consultants a call at (877) 482-3008 for a free consultation. Or, apply now by filling out our 60-second application online, and get the franchise financing you need in as little as 24 hours.
For more information on how to get business funding when banks say no, download our FREE eBook today:
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!
Megan Capobianco is the Marketing Manager at National Business Capital & Services. Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.