How to Get a Franchise Business Loan

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How to Get a Franchise Business Loan
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The Basics of Franchise Financing
Franchise financing allows first-time or serial
franchisees, whether investing in a new or
existing franchise, to pay upfront franchise fees
and other business startup costs. In most cases,
lenders require some personal funds to be put up
before they provide financing, usually 10 to 30
of the total investment.
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Best Franchise Financing Options
Franchisees have many funding options available
to them, but the question of how to get a
franchise loan can seem daunting. They may access
one or several of these financing programs to pay
for their new business. Here are some of the best
loans for franchise business operators.
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Commercial bank loans
Franchisees can apply for a small business loan
from a bank, credit union, or other traditional
lender. It comes in the form of a term loan,
which provides a lump sum of cash that you pay
back with interest monthly over time. Its what
most people think of when it comes to loan
financing. It is similar to a student loan or
home mortgage.
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How To Secure a Small Business Franchise Loan
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• After you determine the type of loan thats right
  for you, here are the steps to take to get
  approved.
• Talk to your franchisor - Franchise companies
  may offer financing or have a list of approved
  lenders who can work with their franchisees.
• Figure out your collateral - Franchise owners
  must guarantee their loans with assets of value
  that can be sold quickly, such as cash,
  equipment, property, stocks, and vehicles. Your
  lender can seize these assets if you miss your
  monthly loan payments.

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• Find out your personal credit score - Running a
  credit report allows you to correct any
  inaccuracies or improve your score if its too
  low to qualify for financing
• .
• Come up with the down payment - Franchise
  lenders typically expect franchise owners to put
  approximately 20 percent of the franchise value
  down before approving funding.
• Write a business plan - Banks and SBA lenders
  usually require a detailed franchise agreement
  plan with revenue and expense estimates and cash
  flow projections.

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Why Choose Biz2Credit?

• Trusted partner for franchise funding
• Biz2Credit was founded in 2007 and has provided
  more than 10 billion in loans.
• Dedicated support team
• Tailored financing solutions

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Thank You