Find the Money to Purchase a Franchise | VetFran

“The secret of getting ahead is getting started.”—Mark Twain

Since you left the military, you have probably been thinking a lot about what your next career move should be in life. Perhaps you have even had franchisee on the brain for awhile. If, after doing the research about franchising, you feel even more strongly about making the move to become a franchisee, it’s time to get started.

Our team at VetFran is here to help you get started as soon as possible. The first move you need to make? Funding.

Funding Your First Franchise

You did your research and found your perfect franchising fit. Now, you are wanting to get started in being a franchisee within the industry. However, when it comes to joining the world of franchise, you must first figure out how to finance your next venture.

There is no denying that starting a franchise requires a significant investment of capital. Fortunately, there are many ways you can go about funding your chosen franchise.

Have a Talk With Your Franchisor

When you start to research a franchise and start getting deeply involved in one, you begin to also develop a strong relationship with the franchisor. This relationship is going to be extremely important through your entire career as a franchisee. However, it could also be initially important when you are looking for a way to fund your franchise.

Many franchisors offer financing solutions to franchisees. Therefore, you want to see first if your franchisor is one of them, especially since it can help to keep everything altogether as you run your franchise.

In addition, funding your franchise through the franchisor can offer a number of benefits, including providing equipment and other resources/needs you will want when starting your franchise.

Check Into Commercial Bank Loans

If there is not an option to fund your franchise through the franchise owner, then you are going to want to look for other ways to invest. Another common solution for franchisees is taking out a commercial bank loan.

You want to make sure your credit score is where it needs to be before applying for a commercial bank loan. When you have a higher credit score, you are able to receive a better loan term, including interest rate.

Don’t Forget to Look at SBA Loans

While an SBA loan is very similar to a loan from a bank (as mentioned above), it can hold its own benefits that are not provided by a commercial bank loan. For instance, receiving an SBA loan can include a lower interest rate, as well as longer repayment terms than other loans like a commercial bank loan can provide.

Just like any other loan, you want to make sure your credit score is where it needs to be before applying for an SBA loan.

Are you interested in the franchising industry? Contact VetFran today to learn how we can help you find the perfect fit!