How To Get Funds For Your Franchise
You want to open a restaurant or retail business but need funding to do so. If the company that you are starting is part of a franchise, there are several options for you to get the cash to get started. To get one of these loans, however, you need to assemble the correct information to submit and know what is the best selection for you. Here are a few steps to get the franchise financing that you require to begin your operation.
Prepare Your Application
Before you submit any paperwork to the lender, you must assemble your financial reports. The bank will request a copy of your credit report and will want to see what your cash flow has been in the past few months. You should also prepare a business plan to present to them. This document details what you want to do to get your company started as well as a timeline of when you hope to accomplish it. It will outline the costs you anticipate, any construction that must be done, and how soon it will be until you open. Once you have everything ready, you can determine which type of franchise financing you want to pursue.
Talk To the Home Office About Lending
The first place where you should begin is with the company that you want to be a part of. The franchisor has a vested interest in helping you since you are opening a location for them in an area that they have yet to have a presence in. Many of these organizations will provide some assistance to you. However, it is normally a fraction of what you are asking for. They can also work with a factoring company to lease you the equipment that you need to open your doors, especially if the pieces are custom to that industry. This type of franchise financing is a good start and can help you pay the few items that you require to get going.
Get a Bank Loan
The Small Business Administration has several programs available to owners to get the money they need to operate their company. They look at your application and, if they have an option for you, will work with a lender to secure a loan for your expenses. You can also talk to your local bank to see if they are able to provide you with franchise funding or any other type of corporate loan.