How To Find A Loan For A Franchise Business Opportunity

Of the dozen difficult aspects of selecting, starting,get a loan from a private lender for whatever
and running a new franchise opportunity, few are asreason, the SBA is able to step in and provide a
potentially paralyzing as paying for it. Most of us haveguaranty to the lender as high as $2mil, making a loan
learned that money doesn't grow on trees, and thepossible by taking the responsibility for a potential
average franchisee-to-be simply doesn't have thebusiness-and thus loan-repayment-failure off the
cold, hard resources to make a business purchasefranchisee's shoulders.
outright. Whether the goal is a Sterling Optical costingThere are, of course, some hoops for the potential
no less than $100,000 or a Baymont Inn at $1mil, thefranchise buyer to jump through in order to get that
staggering line of zeroes at the end of the prices onSBA loan, but the rules of engagement are a little
those business opportunities can sometimes bedifferent with the SBA than they are with private
enough to discourage even a veteran entrepreneur.lenders. Banks and other financial institutions tend to
So what does the earnest and talented entrepreneurlook more at credit and assets than anything else,
with a skinny wallet do? The same thing I did tobecause in our fading economy, their responsibility is
make my way through college: take out a loan. Thekeeping their hands on dollars whether the loan
problem many people run into, though, is that loansrecipient succeeds or not-sounds cold, but we can't
aren't always available to everyone-or at least theyblame them. The SBA, however, is far more
don't seem like it.interested in the business model and the professional
If you've got good credit and enough assets, itchops of the candidate; if they think that this guy
shouldn't be too hard to approach a bank or lendingwith this work from home business plan can make it,
institution, even through your franchisor, and get thehe gets the guaranty. Their concern is not keeping
sufficient funding to start your franchise. There aretheir hands on dollars today, but getting functional
even lenders you can approach via the internet tobusinesses up and going to pump more dollars into
get that startup loan that you're looking for-Diamondthe national economy tomorrow.
Financial and Triple-AAA Financial Service are twoAs a side note, because the SBA is interested in
great options. But, in our dwindling economy withfunctional business plans, they also already have a
skyrocketing interest rates, if your credit is evenrecord of franchisors registered with them, having
slightly off or you aren't a homeowner with assets toalready provided and cleared their business models
leverage, chances are you're going to find yourselfwith the SBA, who agrees that their plans and
pacing, biting your nails, and losing precious hours ofpractices are lucrative and clean. This is a good
sleep over whether your financing is going to comeresource in determining what franchise to purchase
through or not. There are alternatives to needlessas well as figuring out if it will be affordable for you.
worry, however. Aside from the option of finding aThough getting a loan can seem like a hopeless
partner, investors, or someone in your family whoendeavor, there are very real and very effective
has the cash to cosign the deal with you, there is anways to get it done, without having to leverage your
alternative that has proven effective for a goodcar and sell the shirt off your back-after all, no one is
number of franchisees hoping for their own franchisegoing to be comfortable coming into the
opportunities. That alternative is the US government.SIGNARAMA owned by that creepy shirtless guy.
Yes, you read that right; the United StatesYour franchisor and the Small Business Administration
government can actually help you. Though they maycan help when things look really dire. And when
be tapping your phone and reading your email as weyou've passed through the trial and learn how it feels
speak, they are genuinely concerned with gettingto both flounder and fly when it comes to financing a
more small businesses-franchises included-up andfranchise business, you can always go into business
running, because that is what capitalism, and thus ourhelping others to accomplish what you have.
nation, thrives on. The department you're looking forExclusive Commercial Lending and IRA and 401(k)
in this instance is the Small Business AdministrationRetirement Plan Rollover are two companies that
(SBA), and they really can get you the money thatallow you to do just that: make other people's
you're looking for. The way it works is this: when abusiness dreams a reality.
person interested in a small business franchise can't