| 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 as | | | | reason, the SBA is able to step in and provide a |
| potentially paralyzing as paying for it. Most of us have | | | | guaranty to the lender as high as $2mil, making a loan |
| learned that money doesn't grow on trees, and the | | | | possible by taking the responsibility for a potential |
| average franchisee-to-be simply doesn't have the | | | | business-and thus loan-repayment-failure off the |
| cold, hard resources to make a business purchase | | | | franchisee's shoulders. |
| outright. Whether the goal is a Sterling Optical costing | | | | There are, of course, some hoops for the potential |
| no less than $100,000 or a Baymont Inn at $1mil, the | | | | franchise buyer to jump through in order to get that |
| staggering line of zeroes at the end of the prices on | | | | SBA loan, but the rules of engagement are a little |
| those business opportunities can sometimes be | | | | different 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 entrepreneur | | | | look more at credit and assets than anything else, |
| with a skinny wallet do? The same thing I did to | | | | because in our fading economy, their responsibility is |
| make my way through college: take out a loan. The | | | | keeping their hands on dollars whether the loan |
| problem many people run into, though, is that loans | | | | recipient succeeds or not-sounds cold, but we can't |
| aren't always available to everyone-or at least they | | | | blame 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, it | | | | chops of the candidate; if they think that this guy |
| shouldn't be too hard to approach a bank or lending | | | | with this work from home business plan can make it, |
| institution, even through your franchisor, and get the | | | | he gets the guaranty. Their concern is not keeping |
| sufficient funding to start your franchise. There are | | | | their hands on dollars today, but getting functional |
| even lenders you can approach via the internet to | | | | businesses up and going to pump more dollars into |
| get that startup loan that you're looking for-Diamond | | | | the national economy tomorrow. |
| Financial and Triple-AAA Financial Service are two | | | | As a side note, because the SBA is interested in |
| great options. But, in our dwindling economy with | | | | functional business plans, they also already have a |
| skyrocketing interest rates, if your credit is even | | | | record of franchisors registered with them, having |
| slightly off or you aren't a homeowner with assets to | | | | already provided and cleared their business models |
| leverage, chances are you're going to find yourself | | | | with the SBA, who agrees that their plans and |
| pacing, biting your nails, and losing precious hours of | | | | practices are lucrative and clean. This is a good |
| sleep over whether your financing is going to come | | | | resource in determining what franchise to purchase |
| through or not. There are alternatives to needless | | | | as well as figuring out if it will be affordable for you. |
| worry, however. Aside from the option of finding a | | | | Though getting a loan can seem like a hopeless |
| partner, investors, or someone in your family who | | | | endeavor, there are very real and very effective |
| has the cash to cosign the deal with you, there is an | | | | ways to get it done, without having to leverage your |
| alternative that has proven effective for a good | | | | car and sell the shirt off your back-after all, no one is |
| number of franchisees hoping for their own franchise | | | | going 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 States | | | | Your franchisor and the Small Business Administration |
| government can actually help you. Though they may | | | | can help when things look really dire. And when |
| be tapping your phone and reading your email as we | | | | you've passed through the trial and learn how it feels |
| speak, they are genuinely concerned with getting | | | | to both flounder and fly when it comes to financing a |
| more small businesses-franchises included-up and | | | | franchise business, you can always go into business |
| running, because that is what capitalism, and thus our | | | | helping others to accomplish what you have. |
| nation, thrives on. The department you're looking for | | | | Exclusive Commercial Lending and IRA and 401(k) |
| in this instance is the Small Business Administration | | | | Retirement Plan Rollover are two companies that |
| (SBA), and they really can get you the money that | | | | allow you to do just that: make other people's |
| you're looking for. The way it works is this: when a | | | | business dreams a reality. |
| person interested in a small business franchise can't | | | | |