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.
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.