Do you need help getting funding for your new business? If you do, we can help. PROFITURE can help you to better understand your options, and introduce you to third party lenders who understand and deal with Franchise Funding each and every day.
There are many ways to fund your franchise business such as:
Using your available assets to completely fund your new business.
SBA Working Capital “Express” Loan
The Express Loan is for up to $150K and can be funded in as little as 30 days. It typically requires a minimum credit score of 685 and 10-20% cash injection into the business (though this amount can be slightly less at times). Close to half of the franchisors PROFITURE partners with can be funded almost exclusively with the Express Loan, making it a very popular funding option.
SBA 7A Loans
The Small Business Administration also offers loan options up to $5 Million dollars for franchise start-ups. The timeline is longer than the Express Loan, but the loan is partially guaranteed by the federal government. Typically, 20-30% cash injection into the business is required for the loan to be approved.
Rolling over all, or part, of a qualified 401K or IRA to fund a franchise can be done without the penalty or tax that is triggered in a normal withdrawal from these accounts. Even though many of our clients are unaware this option exists, it is a very common method used to start a franchise. This option allows you to use your own money to invest in a franchise.
Portfolio Loans allow you to borrow against the value of your stocks, bonds, mutual funds and other securities rather than liquidating them. Portfolio Loans offer a low interest rate, and can be finalized in two weeks.
Unsecured loans are a fast way to secure amounts typically up to $150K and they can close in up to three weeks. There is no collateral required for an unsecured loan, and interest rates can be as low as 0% for an initial time period, though they may be higher after that.
HELOC (Home equity lines of credit)
Personal wealth built in home ownership or other real estate holdings can be used to help fund a franchise.
When a franchise requires equipment, there can be additional funding options through the franchise, the equipment provider, and our funding partners to help pay for the needed items.