Looking for a franchise is one way to achieve your business goals as an entrepreneur. You should, however, note that buying a franchise entails more than the asking price. You need to meet its operational needs to keep the business functional and productive in the market. For this reason, looking for a franchise loan is the next step. Here are your options.

Small Business Loans

The availability of small business term loans provided by different conventional and alternative lenders should make it easy to achieve your franchise goals. You can get a franchise loan from lenders, buy the business and meet your expectations. Small business loans are readily available with an easy application process.

SBA-backed Loans

SBA loans are another financing option you can effectively consider to fund your franchise. Through SBA-backed loans, you get funds for a specific purpose, which in this case is buying a franchise. It is easy to meet your expectations with SBA loans as the application process is easy and funds are readily available. You, however, need to meet the application requirement to get the best from SBA-backed loans.

Factoring

You can use the unpaid invoices in your business to secure a franchise loan and achieve your objectives. You should, however, look for a factoring company to make the process effective. Understand that this is the fastest way to access the funds and secure a franchise. Understand that if the value of the invoices meets the lender’s expectations, you easily get funded.

Franchisor-Provided Loan

Understand that you will buy the business from a franchisor in the end. You should also note that meeting your entrepreneurial objectives becomes possible using a franchisor-provided loan. This is where the franchisor helps you secure the franchise using their funds, and you repay after the business picks up and becomes profitable.

Family and Friends

While it is not easy, the alternative to taking a franchise loan is working with family and friends to secure the franchise. You can ask for financial help and let your family and friends contribute and buy the business. You can also organize a fund drive and include your family, friends, and colleagues in contributing to the amount needed to secure the franchise.

You should know that securing a franchise can get costly. You need a franchise loan to handle the related needs. At Rustwood Capital, we help you understand your loan options. Call us today.