Tips For Getting A Franchise Loan
Financial endeavors like a small business loan or franchise loan are conventional operations for the banks and credit unions of today.
These financial institutions recognize that small business and franchise acquisitions are necessary.
To a healthy and growing economy. However, where providing a small business loan is slightly more risky for the proprietor and the bank, a franchise loan benefits both parties, as lenders realise the heightened security of funding a franchise establishment due to the proven business models’ success rates.
Discover The Different Funding Options
The first piece of good news is that you have more funding options than just being approved for a franchise loan. Financially viable ways to fund an investment into a CoLaz laser hair removal salon include personal savings, a merchant cash advance, or numerous other types of loans like a:
- Personal Loan
- Home Equity Loan
- Loan Against a 401k
- Conventional Loan
- Business Start-up Grant or Soft Loan
- UK Government Grant Advance
Some general tips for obtaining these or another type of franchise loan include:
1. Apply as soon as possible. The process can be time consuming, so get your questions and paperwork together as soon as you decide to move forward with CoLaz.
2. Make a contact at the bank or institution you wish to receive your loan, grant, or funding from. A personal opinion from the inside can help you make decisions.
3. Don’t start your CoLaz franchise purchase before you actually get the assistance, though. This could be detrimental to your receiving a loan, as the financer will think that it is not a necessity to your venture.
4. Make sure you have a detailed list of what the loan is for—for yourself and the bank. Having a list like: initial investment, machinery, supplies, etc. (the more specific the better) looks better than: need money to open a franchise and will help you prioritize later. If you move forward with a CoLaz franchise, I will help you make sure you have a full and detailed list.
5. Make sure you and your franchise company have a strong business plan to which to adhere. This can keep you from getting off track on the road to financial success. Similar as above CoLaz does have a strong business plan, one that’s been proven to work, and I’ll share it with you after you’ve filled out a form to request more information on the opportunity.
6. It’s also a good idea to have backup funds or a plan in place in case your original source doesn’t work out.
How To Prepare For The Actual Loan Application Process
It is good to have a few general documents composed and ready for your bank to go over with you. These include:
- You and your franchisor’s business plan
- A personal finance statement
- Your professional resume
- Your most recent tax return
- A credit report
- Business projections
- The intended franchise disclosure agreement (FDD)
- The franchise contract to which you intend to agree
Instead of applying with all of the aforementioned information to individual banks over and over until you get the funding you need, you can now access specialized financial institution websites where you simply fill out one universal loan application and include a credit score to be analysed across many different lenders at one time.
After we’d have a chance to speak, I can help you with this process and provide you with valuable resources that make applying for a franchise loan simple and easy.
To find out more about how to get a franchise loan or for other inquiries, click here to fill out a contact form.