Buying a franchise has proven to be an extremely attractive way for entrepreneurs to get into business for themselves. Yet, without successful franchise financing, the dreams of business owners can’t be realized. 

How Can Franchise Financing be Used? 

Franchise financing can be used to purchase a franchise or to acquire a franchise from an established franchise owner. In addition, this financing can be used to fund the initial opening and operating costs of a franchise. Including buying equipment, inventory, and supplies, acquiring, and remodeling real estate, and paying employees. 

What are the Ways to Secure Franchise Financing? 

Some franchised brands offer financing from the franchise corporation itself or through lending partners arranged by the franchisor. This means of financing should be discussed in the initial stages of a potential franchisee’s conversations with the franchisor. The financing arrangements must be disclosed in the Franchise Disclosure Document (FDD). 

A traditional commercial loan can be available through a bank or credit union. Such loans are more likely to be made to a potential franchisee. One who has a solid business track record and excellent credit, and who is buying a franchised brand that has a solid history of success. 

An SBA loan is a loan backed by the Small Business Administration and offered through partnering financial institutions. Often appealing because they offer more attractive rates and repayment terms compared to conventional funding sources. 

Alternative financing can be available through online lenders. 

Retirement funds can be used including accessing funds from a 401(k) or 403(b) retirement account. Or by withdrawing funds from a ROTH IRA using a Rollover for Small Business (ROBS.) 

There are specialist franchise financing companies that can find the best match for your financing needs. 

Seek Expert Financing Assistance 

Contact Atlas Capital Solutions, based in Pittsburgh, PA for expert financing solutions. Our team helps businesses and entrepreneurs navigate the alternative financing landscape to get the funding that you need.