Common Funding Sources

Identifying the best funding source for your entrepreneurial endeavors is one that should be approached with great consideration and the guidance of your CPA. Here are the 3 most common funding sources for a franchise purchase.

#1 Home Equity Loans
Pros - Quick and easy application process, flexible repayment terms, typically lower interest rate then other commercial loans, possible tax benefits
Cons - betting the house

#2 SBA Loans
Pros - Access to capital that may not be available from other sources
Cons - Tedious application and approval process, Up to 30% down required, Controlled disbursement of funds, fixed payments (7-10yr terms).

#3 Using Retirement Funds
Pros- Easy process through third parties, No Interest, No financing payments, Starting the business without third party debt.
Cons - Betting your retirement - Be very comfortable you are buying a franchise that has shown to garner strong resale prospects as that is how you will reap the rewards of your investment. Look for opportunities that will build strong recurring revenue and talk to your account before going down this path.

We currently work directly with partners that can assist you with any of the options described above as well as unsecured loans and equipment leasing opportunities. Please contact me directly if you are interested in being referred to one of our partners.

Have a great weekend!


Regards,


Rob