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Franchise Financing
If you're considering the purchase of a franchise and you have an interest in financing a portion of your investment, you're probably asking yourself...
Should I get a Small Business Loan to help finance my franchise?
Should I use my home equity or a line of credit?
Should I finance my franchise with my 401K or retirement funds?
Some franchise companies, especially well-established franchises, will entertain the idea of loaning franchisees money or can help arrange third party financing. If this is not an option, you should always visit your local bank. If, they're unable to offer you an unsecured loan they'll help you investigate either a home-equity loan or an SBA loan.
Loan Criteria
Home Equity Loan
Small Business Loan
Loan Amount
Up to 100% of Home Appraisal Less Mortgage Amount
Up to $2,000,000
Term
Up to 25 years
Typically 3-5 years
Interest Rate
Prime Rate + ¼%
Prime Rate + up to 3% over
Required Investment Injection
None
25%-30% of Cash Required
Collateral Required
Home
Home and any other Assets
Business Plan
None
Acceptable Business Plan
Credit History
Good Credit
Good Credit
Franchise History
None
2 year operating history
Franchise Financing Partners
BeneTrends, Inc.
Open a Business Using Your Retirement Funds With No Taxes, No Penalties and No interest.
Use your retirement funds to:
Buy a franchise or an existing business
Meet capital requirements for an SBA loan
Supplement traditional forms of franchise or business financing
Purchase business real estate
Capitalize a business or franchise opportunity
Fulfill your dreams
At BeneTrends, we know you understand the benefits of opening your own business or franchise.
They're simple and clear:
Save money - eliminate penalties and taxes
Build for the future - invest in yourself
Plan for security - without using the roof over your head
For further information on the BeneTrends Rainmaker plan click here.
The bottom line is to first check with the franchisor then consider all your options. Most established franchise companies would likely have made some arrangements to help you finance your franchise.
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