{"id":2620,"date":"2020-02-18T00:28:12","date_gmt":"2020-02-18T05:28:12","guid":{"rendered":"https:\/\/zacsburgers.com\/?p=2620"},"modified":"2022-10-13T08:38:12","modified_gmt":"2022-10-13T12:38:12","slug":"6-franchise-financing-tips-for-the-first-time-franchise-investor","status":"publish","type":"post","link":"https:\/\/zacsburgers.com\/6-franchise-financing-tips-for-the-first-time-franchise-investor\/","title":{"rendered":"6 Franchise Financing Tips for The First Time Franchise Investor"},"content":{"rendered":"
When dealing with financing a franchise for the first time, there are many things that you will encounter that you have not dealt with before. This process can be quite complicated for those who don’t have a background in business or finance and getting help with finding the right loan and financing options for you can make the process smoother.<\/p>\n
Most lenders will want to know all your liabilities, business experience, and net worth before moving forward, so having these numbers and information can be a way to cut down the time it takes you to get the financing you need. However, there are more financial needs that just the initial franchising fee<\/a>. This can include the cost of inventory, construction for building setup, and other issues along the way.<\/p>\n Getting financing itself is hard enough, but you want to ensure that you are getting a big enough loan to cover all the costs for franchise financing<\/a>. With these 6 financing tips, you will be able to ensure that you get all you need to start your food truck franchise<\/a> or restaurant.<\/p>\n The first step in many situations will be to speak to the franchisor themselves about what the best decision would be. With the franchisor dealing with multiple people in the same scenario as you, they will likely have some tips or suggestions for who to go to for the size loan you need and they can walk you through all the expenses that you will need to have covered.<\/p>\n They are there to ensure that you have the best chances of succeeding, so don\u2019t be afraid to reach out and see what they have to say. They will almost always have a suggestion for what to do when you need some help.<\/p>\n Not every loan officer or lender will know what goes into franchise financing specifically, and having someone help you with the details is crucial. So, if your franchisor doesn\u2019t have a certain lender in mind, then look for lenders who have experience with this type of financing<\/a>.<\/p>\n You may also want to make sure that the lender has dealt with franchises under 100k. Some lenders have only financed larger operations that cost a few 100,000 for the startup. This is not necessarily helpful for someone who is purchasing a smaller business, so you want to know that the lender knows how to handle a smaller franchise.<\/p>\n1. Talk to Your Franchisor<\/h2>\n
2. Search For Lenders Who Understand Franchises<\/h2>\n
3. Be Upfront With Your Lender<\/h2>\n