Personal and Business Loans

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Franchise financing for first-time franchisees

Some potential franchise financing sources include the following:

- Personal savings and investments
- Borrowing from friends and family members
- Taking out a small business loan from a local bank or credit union
- Obtaining a second mortgage on your home
- Working with outside investors or investment capital firms
- Obtaining a loan from the U.S. Small Business Administration (SBA)
- Obtaining a loan from Canada Small Business Financing (CSBF

You must come up with the money to be in business!

The statistical truth is that the single most common reason new franchisees (and for that matter, all other types of new businesses) fail is that they did not have enough money going into the investment. Read more of this >>

photo credit: leojmelsrubInvestors

Inviting investors to invest in your business is something you will want to prepare for in advance. Have a proposal ready with your business plans, goals, financial needs, and record of your achievements and past business ventures. If your franchise has a well-known brand, then make sure to note that the business is likely to succeed. Finding investors will not seem easy at first, but the more you get into it the more confident you will be and more likely to find interested patrons.

Retirement Money

A lot of new business owners run the risk of taking money from their 401k or other retirement funds to finance their business. While this is a risky step for a new entrepreneur, it is much less risky when you are opening a franchise, as the success rates are significantly higher. As long as you keep a tight budget, and remember to put money back into your retirement, it can be a very smart and fairly simple way to finance a franchise. Read more of this >>