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Franchise Financing

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Posted: 8/17/11 01:30 PM
Contributed By: Sandeep Bansal FRIEND HIM ON Twitter | LinkedIn | Facebook
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As any small business owner knows, there are times when your business needs a little extra money. You might need the money to upgrade your business or equipment, do more advertising, or to replace equipment that has broken. You may think the only options are a standard business or personal loan or maxing out your personal credit cards. But for many small businesses, franchise financing is a great option.
How can a small merchant compete? Banks and credit cards companies are feeling the economic crunch making it near impossible to obtain a loan or line of credit.

Easy terms and fast approval
Prequalification for franchise financing is very easy, especially when compared to traditional loans. In most cases, you will be preapproved for your money in 24 to 48 hours, and will have the money in your account within 10 days. Franchise financing is available in amounts from $3000 up to $600,000 or more. Since approval is based on your past credit card sales, your personal credit will not come heavily into play.

Bad credit? No Problem!
You can still qualify for franchise financing even if you have bad credit. There are no upfront fees, and very little paperwork is needed from you. In some cases, you may even qualify for franchise financing even if you've only been in business for 6 months. You must do a minimum dollar amount of credit card sales per month in order to qualify. These minimum amounts vary, but can be as little as $2500 per month. This amount is very attainable today, as so many people use plastic for every purchase they make. (!!!???)

Flexible repayment options, based on sales performance.
When it comes to repaying a loan, franchise financing offers the most flexible options around. Franchise financing payments are based on your credit card sales, so you only have to pay a percentage of your credit card sales towards the loan every month. This means your payments are not fixed but are based on how well your business is doing. This can be a lifesaver for any small business that may have a slow month from time to time. Repayment term lengths vary, and some franchise financing lenders allow you the option to renew your loan after a certain period of time has passed.

The woes of a small business owner are many
Small business owners are subject to a number of expenses in day-to-day business. The two largest such expenses are payroll and rent for your office or storefront. But you also must factor in the costs of equipment, office and other supplies, utilities, fuel and upkeep for company vehicles, insurance, and advertising. These expenses can put even a successful small business in the red over a period of several months or years, particularly if business slows down.

There are many financial pitfalls for small businesses as well. One of the biggest problems you may face is turning a profit quickly. Startup costs for a small business can be tremendous and include things like rent and utility deposits and purchasing vehicles, equipment, and supplies. If your small business doesn't take off soon enough, you may find yourself in the red from startup costs alone. Many small business owners resort to taking out mortgages on their homes or maxing out personal credits cards to try to keep their businesses afloat, but franchise financing is a much better option.

Use our service to get over such obstacles and build your dream enterprise!
The funds you receive from franchise financing may be used for any business related purpose. You can use the money to purchase new equipment such as computers or upgrade the equipment you currently use. Spread the word about your business with additional advertising funded by your franchise financing loan. If you need to move your business to a more desirable location, or spruce up your office with new paint or furniture to impress potential clients, you can do that too.

Franchise financing is a great option for small business owners
Whether you're in a financial jam or just looking to expand your business quickly. No other lending option offers the flexibility and ease of franchise financing. Check into franchise financing and expand your business today.

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