How to Fund Your Franchise

Funding your franchise

The largest barrier when it comes to opening a franchise is typically access to capital. Fortunately there are a variety of ways you can fund your franchise investment.

Funding Options

SBA Loans: One of the most common forms of financing, these loans—up to $5 million—are guaranteed by the Small Business Administration (SBA) and lent by banks.

Low-doc SBA Loans: An alternative for those searching for lower amounts of capital, $150,000 or less, these loans offer you the same benefits as SBA Loans with a shorter turn-time.

Rollovers for Business Start-Ups: Rollovers for Business Start-ups allow you to utilize your retirement funds without taking a taxable distribution to start a franchise.

Portfolio Loans: If you own bonds, mutual funds, stocks, or other securities, you may be able to leverage those funds to open your business—without liquidation.

Unsecured Loans: You won’t need collateral to qualify for these loans, which can happen in just three weeks. They are a great option if you need a fast funding solution.

For more information about the above funding options, visit the Franchise Financing section of FranchiseBusinessReview.com. For a detailed walkthrough on funding your franchise, visit FBR Franchise Buyer’s Toolkit.

The good news is that there is a franchise for every budget.  When you look at our 2017 list of Top Franchises, which features 200 brands that were ranked highest by their franchisees, you’ll notice many have start-up costs of $100,000 or less. Some are as low as $500.

As the Editorial Director at Franchise Business Review, Emma Pearson reports regularly on today's top franchise opportunities and the latest trends in franchising. She also writes and oversees the publishing of Franchise Business Review's annual Top Franchises, Top Low-Cost Franchises, Top Franchises for Veterans and many other specialized franchise reports. They feature the only lists of top franchises based on feedback from those who know best - the franchisees who own them.

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