You’ve had a great idea, you want to work for yourself, and you have great leadership qualities, and the most natural thing for you to do now is own a business. Owning a business can come with a lot of benefits, such as defining your own workspace and schedule and hiring employees.
Maybe you are not an inventor or someone with a great idea that has never been patented. Maybe you know you are a natural-born leader and can work on somebody else’s idea or brand effectively.
If any of these ideas interest you, you should investigate owning a franchise. If you have done any research, you know that owning a business requires a lot of capital and start-up costs.
Finding the right financing options in a world of money-hungry investors can be draining, but know that by the end of this article, you will be further educated on the options that are available to you.
1. Internal Franchise Financing
Often, the company that you are intending to help branch out and create a franchise investment will help you get on your feet financially.
Business owners, especially of the franchising type, often want competent leaders to help their brand branch out into wider areas. They often have inclusive training and funding available to those who want to franchise their business.
Zac’s Burgers is one of the best franchises to buy if you are looking towards owning a burger franchising service. Their internal franchise financing options are very inclusive and helpful for long-term investors.
Here is a list of some of the cost benefits to consider when thinking of creating a burger franchising joint with Zac’s Burgers:
- Small Start-up Costs
- Low Cost of Materials
- Ideal & Affordable Location Size (Usually 1500-2500 Square Feet)
- 2 Weeks Paid, Personalized Training
There are many franchises for sale out there, and each company will have incentives for you to buy into their brand, so be sure to research and choose a business plan that works for you.
2. The SBA (7)A Loan
SBA loans of any kind can help start your franchise, but often SBA loans are hard to receive, slow to process, and prone to disqualification on many important terms. Not all SBA loans, however, are this hard to access.
When starting a new franchise, the SBA (7)A loan is a great option for flexible spending. The amount that you can typically qualify for goes up to $5 million, and terms are often set for 10-25 years.
Requiring any type of SBA loan will come with a few stipulations on your end, too. To qualify for an SBA loan, you often need at least 2 years of business experience and financing and a good credit score.
- Offers flexible spending
- Quick funding turnaround time, sometimes within 36 hours
- Can provide a large amount of money, up to $5 million
- Hard to qualify for
- Lengthy paperwork with specific documentation
While there are many SBA loans that you can qualify for, there are other outside-the-box ways to raise money to finance a franchise investment.
3. Alternative Lenders
There are many lender options available online that usually offer quicker turnarounds, and a less demanding set of requirements to apply. They are much more accessible than their traditional counterparts, for they can be applied for online.
While the guidelines and restrictions are less demanding, you often pay the price for a non-traditional funding option.
Alternative lenders tend to be generally more expensive, their repayment periods more time-demanding, and their loopholes often are tricky to maneuver. You have to be more careful when applying to make sure that it is a reputable lender.
- Quick apply and approval of funds
- Variety of loan expenses, such as equipment and property ownership
- Convenience and many business options
- Higher rates and interest
- Prone to hidden and unexpected fees from smaller loan offices
4. Loans from Family and Friends
Sometimes in life, you just have to take a leap of faith. There are certain moments and opportunities that demand your attention and effort, and often the people who care most about you want to see you succeed.
Depending on your family and friend resources, you may have a couple of thousands of dollars waiting for you when you summon the courage to ask.
Friends and family members can be tricky investors, however, if they are undependable, too strict on their guidelines, or generally slow to invest in something that may eventually flop. Whatever your situation, it never hurts to ask, and sometimes you win bigger than you would have expected.
- Often more lenient terms
- Instant access to funds in some cases
- Getting your inner circle involved in your passion
- Sometimes unreliable
- Can damage or sever relationships if not handled professionally
There are so many crowdfunding options available to you when looking at franchises for sale. With the current number of programs and services available to help fund your passion, it would be foolish not to put your name in the ring for donations.
Many services will help you get the money you need to buy into a franchise, such as GoFundMe and Kickstarter, but they will require a little creativity and a good marketing plan to reach a high funding goal.
- No long-term investment fees
- Usually based off donations
- Saves you from having to buy into bigger loans
- Hard to get traction
- Unreliable gains
Starting a franchise can be overwhelming at first, but finding the right loan options will set you on the right track. If you are looking for the best franchises for sale, or more specifically, the best burger franchising option available, look no further than Zac’s Burgers.
With a high-quality menu-design, free training, and an easy start-up preparation package, you will be sure that you just invested in one of the best franchises to buy.
So, what are you waiting for? No one can stop you from finding the right loan options for franchising. Get out there, pursue your dreams, and get the money that you are after.