Webinar: Navigating Franchise Funding with Benetrends Financial

Blog September 30, 2024 3 min to read

franchise financing with benetrends financial

Starting a franchise can be an exciting venture, but figuring out how to fund it can often feel overwhelming. In this webinar, Michelle Rowan, President of Franchise Business Review (FBR), and Jade Maloney, a franchise funding consultant with Benetrends Financial, discuss several key franchise financing options.

Franchise Business Review has spent two decades providing critical insights and resources for the franchise industry. By collecting data from thousands of franchise owners, FBR helps potential franchisees gain an unbiased understanding of what to expect when investing in a franchise. This knowledge is crucial, as not all franchise opportunities are created equal.

With over 40 years of experience, Benetrends Financial is recognized for its expertise in helping entrepreneurs secure funding. Having assisted more than 30,000 business owners, Benetrends is a trusted partner, particularly in the franchise space. Jade emphasizes the importance of customizing funding strategies to fit individual needs, as one size does not fit all when it comes to financing.

Franchise Funding Options In Review

The Rollover as Business Startups (ROBS) Option

Michelle and Jade discussed the benefits of a Rollover as Business Startups (ROBS) program. This unique solution allows entrepreneurs to use pre-tax retirement funds to finance their businesses without incurring early withdrawal penalties or taxes. Essentially, ROBS enables you to invest in your own business, turning retirement savings into capital without the burden of debt.

The ROBS process is relatively quick, often taking just two to three weeks to set up. This is in stark contrast to traditional SBA loans, which typically require a longer timeline of 60 to 90 days. The ability to access funds rapidly can be a game-changer for entrepreneurs eager to get their franchises up and running.

SBA Loans: A Popular Choice

SBA loans remain one of the most common financing options for small businesses, providing government-backed loans that cover a significant portion of startup costs. These loans generally require a 20% equity injection from the borrower, making them a viable option for those who can meet the financial criteria.

Jade notes that while SBA loans have favorable terms, the approval process can be lengthy. Therefore, it’s advisable for potential franchisees to get pre-qualified early. This not only clarifies what funding options are available but also helps in narrowing down suitable franchises based on financial capacity.

Quick Start Loans and Custom Strategies

In addition to ROBS and SBA loans, Benetrends offers a “Quick Start” loan program designed for those needing immediate funding. This unsecured loan option allows entrepreneurs to secure amounts between $50,000 and $250,000 with minimal paperwork.

Jade also explained the potential of combining ROBS with SBA loans. By starting both processes simultaneously, entrepreneurs can leverage their retirement funds for the down payment on an SBA loan, thus meeting liquidity requirements and expediting their franchise launch.

Resources for Entrepreneurs

Navigating franchise funding can seem daunting, but with resources like Franchise Business Review and Benetrends Financial, aspiring franchisees have access to the knowledge and tools necessary for success. Whether considering ROBS, SBA loans, or quick-start financing, understanding these options is crucial for making informed decisions on your franchise journey. If you’re contemplating franchise ownership, don’t hesitate to explore your funding options. Benetrends Financial is proud to be an educational resource for prospective franchise owners.