Do you know enough about franchisor financing?

If you’re going to own your own franchise, you know that funding it must be a key part of your plan. But do you know enough about your options? Read on to find out.

Franchisor financing

One option is obtaining funding directly from the franchisor themselves. Sometimes, franchisors offer funding not only for their fees, but also for any equipment or supplies you need to get the business up and running. Some may even defer payments while the franchise is getting off the ground, or offer a sliding scale repayment model.

SBA loans

One of the most popular types of funding for those looking to start franchises is the SBA loan. Partly backed by the U.S. Small Business Administration, they’re similar to term loans you get from a bank. But because the Administration guarantees part of the loan amount, lenders have a greater incentive to offer lower interest rates and better repayment terms to borrowers.

Crowdfunding

It’s used for everything these days from buying your dream house to paying off medical bills: crowdfunding. It may also be a way for you to get capital for your new franchise. It can be especially helpful if traditional loans are hard to come by (for instance, if your credit history has a few dings on it).

Want to learn more ways to finance your franchise? Talk to a franchise consultant today!