Every franchise owner should want to grow his/her franchise, right? Growth is an important measure of success, but the reality is that owning a franchise requires lots of capital. So, adequate franchise financing is critical to both success and growth.
Good Reasons to Grow a Franchise
Growth by itself can’t make a bad operation good, but the growth of a good operation offers many benefits. First, growth provides an optimistic outlook for all shareholders and enables an owner to attract and keep talented employees as well as to secure needed funding. Growth reduces the risks faced by a business by expanding its customer base and its available resources. It also helps all employees increase their expertise. Growth helps to reduce unit costs and increase profitability. Wise franchise financing helps to undergird wise growth.
Different Franchise Financing Options
Consider these franchise financing options:
• Franchisor financing. Many franchised organizations offer some type of franchisor financing assistance. That can be through partnerships with specific lenders or by providing capital from the corporation.
• Commercial bank loans. Traditional term loans accessed through a banking institution are commonly thought of as a good source of up-front funding. A bank will look closely at the personal credit history and financial history of the prospective franchisee, his/her business plan, and the history and reputation of the franchised brand.
• SBA loans. The Small Business Administration (SBA) provides loans that are backed by the small business administration and funded by their lending partners. SBA loans come with more favorable terms than traditional loans, but the application process is a long and stringent one.
• Alternative lenders. Franchise financing can be acquired from alternative lenders that typically have less stringent lending requirements and faster turnaround times compared to traditional financing options.
• Financing specialists. There are financial entities that specialize in finding the right financial solutions for businesses, including franchise financing.
Seek Expert Financing Assistance
Contact Rexford Commercial Capital, based in Rexford, NY. We provide a wide range of commercial finance solutions and we put your interests first. Get the financing solutions you can trust.
