The Best Franchise Opportunities for Hispanics!

Franchise News

January 25, 2013

Financing the purchase of franchises

According to funding requirements, there are many franchises that will help a franchisee with the financing to get started or advise you how to get it.

Many investors have made the decision to start their own business and we know that at this stage of development of our franchise, our business is far less risk than many of our competitors. Much is known and has been written about the challenges that must be addressed by a businessperson starting their own venture - basically, it is extremely difficult to compete against the rest of the market as an unestablished company.

By purchasing a franchise, you have the strong backing of an established brand that knows how to compete in the market from years of experience. If you as a franchisee do not have previous experience starting or running a company, rest assured that our franchise offers training programs, continuing education and support in all areas that need to be addressed. This includes such things as payroll staff, general administration, financial transactions, providing economies of scale products and marketing.

What economic and financial capacity do you need?

It is important to choose the industry and the brand that best suits you. However, you must have the minimum capital necessary to begin a business in a certain industry.

Experts believe that a franchisee must have cash totalling at least 40% of the overall investment required to start a business under the franchise format.

Different modes of financing

According to funding requirements, there are many franchises that will help a franchisee with the financing to get started or advise you how to get it. Much will depend on the franchise you choose, but you must make a minimum payment to start.

Special credits

The Federal Agency for the Development of the Small Business Administration (known as the SBA) provides support for franchise loans and business in general. There is some variety in the forms and amounts, but this lender, after evaluating the business plan and the investment project properly, establishes that the personal circumstances of the future franchisee will not allow him to make the minimum payments to start the business, has the ability to loan towards that end. In these cases, then, there is the possibility of a franchisee taking advantage of SBA loans.

Normally the SBA usually gives its approval and guarantees up to 80% of the loan that the lender granted. The total amount funded by the SBA is different according to various circumstances, but in most cases a franchisee will be able to maximize the SBA contribution. SBA programs can be viewed in detail through the web or toll free at 1-800-827-5722.

Learn more about conditions of some selected brands

In order to know which brands offered in franchise usually have some sort of advantages in financing, please continue browsing our website. There are many case studies on this site that you may study before presenting your case to the SBA, such as the cases below:

7-Eleven provides financing for all normal operating expenses of the store.

Jan Pro Cleaning System who provides the opportunity for prospective franchisees to obtain financing for the initial franchise fee directly from the Company.

Maaco has been able to finance in many cases with 25% of the amount needed, once the future franchisee has invested a significant minimum.

Service Master Clean, provides financing to the franchisee start your own business, and also to help it grow in the future.

Category: General

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