Small Business Loans for Franchise Owners
Owning a franchise has more than startup costs. We’ve been helping existing franchise owners run and grow their businesses for over 10 years. If you need business funding to keep moving forward, we’re here for you.
While starting a franchise is likely to be any franchise owner’s greatest expense, running and growing a franchise can expensive as well. In addition to standard business costs, you’ll have to pay for the right to franchise a well-known business. And as with any business, there are unexpected costs that come up.
Whether you’re looking to expand to a new location or kickstart a marketing and advertising campaign, we can help you make the most of it with flexible funding options. Competitive rates and a variety of terms mean you can choose the loan that’s right for your franchise business. We make the process to apply for a business loan fast and easy and you can get started online. Below is a list of the requirements to get approved for business funding with our most basic program. There may be additional factors that are considered, meeting these three requirements though gives you a very high chance of having your application approved.
What Do I Need to Qualify?
Below is a list of the requirements to get approved for business funding with our most basic program. There may be additional factors that are considered, meeting these three requirements though gives you a very high chance of having your application approved.
Here are just some of the loan products that franchise owners can put to use:
Our term small business loans give you the money you need for any part of your business. Need to pay the franchise fee for a new location? Bring on staff for a seasonal rush? Buy new equipment? A term loan will help you do it.
You can get up to $1,000,000 at interest rates as low as 5%. That’s much lower than a traditional bank. All you need to qualify is two months in business, $8,000 in monthly revenue, and a credit score of 500 or more. With flexible terms from 2–36 months, you can choose the small business loan that’s right for your needs.
Franchisees face numerous expenses that most other business owners don’t have to worry about. And that can cut into profits enough that it’s difficult to run or expand a business. Our term loans help you build up the cash flow necessary to grow your company and increase revenue.
We know that people make mistakes. And we don’t believe that those mistakes should keep you from running your business. Traditional banks don’t work with business owners who have less-than-stellar credit. As an alternative lender, we do. And we offer you rates that won’t drive you into the red.
Even with bad credit, you can still get up to $1,000,000 in funding. Interest rates start at 12%, and we offer terms from 2–18 months. As long as you have a credit score of 500 or higher, you can qualify for a loan.
These loans can be used for anything business-related, just like our other small business loans. From paying franchisors to paying employees to paying bills, we can help you get the funding you need to run or grow your business.
Most banks require that you put up some collateral when you take out a loan. If you can’t pay, they repossess the asset—that could be your car, your house, the building you run your business out of, or even your inventory.
But you shouldn’t have to put your business on the line just to get the funding to run your business. We don’t ask you for collateral. Because we’re an alternative lender, we can do that. And we still offer you great terms.
Up to $1,000,000, interest as low as 9%, and terms from 2–36 months mean you can get an unsecured business loan that works for you. All you need to qualify is one year in business, at least $10,000 in monthly revenue, and a credit score of 500 or higher. If you meet those requirements, we’ll help you out with a loan. Even if you don’t put up collateral.
Like any other business, franchises have unexpected costs. Maybe your equipment breaks. Or you need to consult with a lawyer on some franchise paperwork. You might just want to launch a marketing campaign at a specific time.
A business line of credit helps you make those unexpected purchases. It’s like a credit card—you can use up to $250,000 at a time and pay it back in monthly installments. But instead of paying 30% or more in interest, we only charge you 5–10%. That’s a game changer.
With six months in business, $10,000 in monthly revenue, and a credit score of 650, you can qualify. And our flexible credit terms mean you can get the line of credit that works best for you.
Here are some common expenses that franchise owners face:
Expansion Franchise Costs
You paid a franchise fee for your first location—and now you’re ready to expand. Unfortunately, a single franchise fee doesn’t cover multiple locations. You’ll need to pay again. But now, instead of being able to save up for the fee, you’ll probably pay it out of your profits.
And because a new franchise location can cost up to $50,000, you’ll need to have a lot of cash on hand. If you don’t have that money, it’s time to take out a business loan for expansion. You’ll make that money back—and maybe even be able to pay off the loan early. But you’ll probably need help getting started.
Of course, you’ll need more than the franchise fee. You might also need rent or a mortgage payment; cash for new equipment, displays, and signage; and money to hire and train new employees. That adds up fast. A business loan makes it much more reasonable.
Consulting With an Attorney
Some franchises require you to sign complicated contracts that give you many responsibilities and obligations. And because there are so many fees involved—from franchise fees to royalties and beyond—you should have a lawyer look over the contract.
That can have significant costs. You could pay up to $5,000 for an attorney to look over those documents. Even if you saved up tens of thousands for a franchise fee, that extra expense might put you over the edge.
But don’t skip out on it. It’s crucial that an attorney who knows your rights helps you get the best franchise contract possible. If you’re not sure that you can afford one, it might be time to get a short-term business loan.
Ongoing Fees and Royalties
Many franchisees pay money to the franchising company throughout the life of their business. These fees come out of your earnings, so it’s not like you have to write a big check every month. But they eat into your profits, and that can hinder growth.
For example, if you want to buy new equipment, you’ll need all the money you can get—and paying royalties cuts into that. New training, more employees, and infrastructure improvements can all be slowed by continued fees.
A business loan can mitigate those costs and help you grow your business sooner. That means you’ll be making more money to continue paying those fees while bringing in more revenue. And that leads to growth. But you need cash up front to get started.
Marketing and Advertising
You have a big name backing your business, but you still need to get in touch with local customers. That means marketing and advertising campaigns. Even if the franchise helps you with these, you’ll still pay for them.
It can be something as simple as a billboard or as complex as a full-on digital marketing campaign. You could pay a one-time fee or hire several new employees. Whatever you decide to do, it’s an important expense: no one will come to your business if they don’t know about it.
It’s one of the cases where the saying “you have to spend money to make money” is very true. And if you don’t have the money to spend, it’s time to take out a short-term loan to help you cover your costs.
Want to find out more about how we help existing franchise owners? Curious about our loan products? Get in touch today!