by Kenbry Capital | Feb 24, 2023 | Blog, Franchise Financing
Owning a franchise is a great opportunity for aspiring business owners, but financing it can be intimidating. Finding the right financing option is key to getting your business off the ground and setting yourself up for long-term success. Here are seven ways to finance your franchise.
Small Business Administration (SBA) Loans
The Small Business Administration (SBA) offers several loan programs designed to help new businesses get off the ground. One of these is the SBA 7(a) Loan Program, which offers long-term, low-interest financing options for businesses in all industries. This program also provides access to capital, so you can use it to cover start-up costs, working capital expenses, and other related costs associated with buying a franchise.
Crowdfunding
Crowdfunding is an increasingly popular way to finance a franchise. Several crowdfunding platforms, such as Kickstarter and Indiegogo, allow you to raise funds from individual investors or backers who believe in your project. Crowdfunding campaigns typically last between 30 and 60 days and they’re perfect for franchises that don’t require large amounts of capital upfront.
Personal Loans
Personal loans are another option if you’re looking for quick financing with minimal paperwork involved. Most personal loans come with fixed rates and repayment terms ranging from one year to five years depending on the lender. This type of loan is ideal if you have good credit and a steady income because it allows you to borrow money without putting up any collateral or assets as security against the loan amount.
Retirement Account Financing
If you have retirement savings in an IRA or 401(k), you may be able to use those funds as collateral when applying for a loan from a bank or credit union. Some lenders will even let you use your retirement account as collateral without having to liquidate it first, allowing you full access to your funds while still being able to pay back the loan over time with interest payments deducted directly from your retirement account each month until the full balance has been paid off. This type of financing could be an attractive option if you need quick cash but don’t want to tap into other sources of funding such as credit cards or home equity lines of credit (HELOCs).
Financing a franchise can seem overwhelming, but plenty of options are available if you know where to look. From SBA loans and personal loans to crowdfunding and retirement account financing – there are many ways that business owners can fund their franchises successfully without having to put too much strain on their finances or deplete their savings accounts to get started. With careful research and planning, finding the right financing solution should be simple enough so that you can focus on what matters – running your business!
There are numerous benefits to opening a franchise business, such as having an existing marketing team and brand recognition. However, there are still financial hurdles to making your dream of operating a franchise restaurant or store a reality. The professionals at Kenbry Capital can help you become successful through our franchise financing program.
by Kenbry Capital | Feb 17, 2023 | Blog, Franchise Financing
Are you a business owner interested in franchising? If so, then you should consider applying for a Small Business Administration (SBA) loan. An SBA loan is an attractive option for those who want to open a franchise because the loan can be used to cover the costs associated with starting or expanding a business. In this blog post, we’ll take a closer look at how to apply for an SBA loan and what you should consider before submitting your application.
Eligibility Requirements
In order to qualify for an SBA loan, you must meet certain eligibility requirements. These may include having good credit, having sufficient collateral, and having adequate cash flow. Additionally, your business must comply with the size standards established by SBA guidelines. The size standards vary from industry to industry and are based on the number of employees or average annual receipts of the business.
Application Process
Once you’ve determined that your business meets all of the eligibility requirements, it’s time to start preparing your application packet. To apply for an SBA loan, you will need to provide information about your business plan and current financial situation as well as personal financial statements and tax returns from yourself and any other owners of the business. It is important that you provide complete and accurate information in order to increase your chances of being approved for the loan.
Making Your Pitch
When applying for an SBA loan, it is important to make sure that your application stands out from other applicants. Consider putting together a presentation that outlines why your franchise is unique and why it has the potential for success. Make sure that you emphasize how investing in this franchise will benefit both you and the lender in terms of profits and job creation.
Applying for an SBA Loan can be a great way to finance a new or existing franchise business venture due to its low-interest rates and long repayment period options compared to traditional loans or investors. However, it is important that you understand all of the eligibility requirements as well as prepare a thorough application package including all necessary documents before submitting it to ensure that you have increased your chances of getting approved by lenders or investors who might find value in what your franchise offers them in return for their investment. Doing these things will help ensure that when taking out an SBA Loan, both parties involved are confident that there is mutual benefit involved when agreeing on terms with each other.
Let the team at Kenbry Capital assist your company with tailored financing solutions. Contact us today.
by Kenbry Capital | Feb 3, 2023 | Blog, Franchise Financing
If you’re looking to buy a franchise, you may be wondering how to finance such an endeavor. Investing in a franchise involves significant capital, and it’s essential to understand the different ways of financing your dream business. This blog post will discuss seven options for financing when buying a franchise.
1. SBA Loans: A Small Business Administration (SBA) loan is one of the most popular ways of financing a franchise purchase. These loans are typically backed by the federal government and offer competitive rates and long-term repayment plans, making them ideal for those who need more time to pay off their loan. However, SBA loans can be difficult to obtain due to their strict requirements and lengthy application process.
2. Home Equity Loans or Lines of Credit: For those who own a home, tapping into your available equity can effectively finance a franchise purchase. Home equity loans provide lump sum payments while lines of credit allow you to borrow only what you need when you need it, making them great options for those hoping to finance their franchise purchase quickly and easily.
3. Retirement Accounts: If you have an IRA or 401(k), you may be able to use these accounts as collateral for your franchise purchase without paying any taxes or penalties on the borrowed funds. This can be an excellent option for those with substantial retirement savings but also comes with certain risks, so make sure you speak with a financial advisor before taking this route.
4. Personal Loans: Personal loans are another viable option for financing a franchise purchase as they typically offer lower interest rates than other types of loans and don’t require any collateral or down payment. However, these loans usually have shorter terms than other financing types, meaning that borrowers must be prepared to pay off their loans quickly if they don’t want to accrue additional interest charges over time.
5. Crowdfunding: Some entrepreneurs have had success with crowdfunding platforms such as Kickstarter or Indiegogo when looking to finance their franchises – however this type of funding is often not enough on its own and should only be used in conjunction with other forms of financing to ensure that all costs associated with your business venture are covered adequately.
6. Grants: Depending on your location and the type of business that you’re looking to start, there may be grants available from government agencies or private organizations that can help cover some or all of the costs associated with starting up your business venture – so make sure you do some research before assuming that all financing has to come out-of-pocket!
7. Angel Investors/Venture Capitalists: Finally, if you’re looking for more serious funding then seeking out angel investors or venture capitalists might be something worth considering – however this route should only be taken after careful consideration as giving away equity in exchange for capital can significantly reduce the amount of control that you have over your business in the long run!
When buying a franchise, potential business owners must understand all their options when it comes to financing their dream business endeavor – from traditional lenders such as banks and SBA loans – through more innovative solutions like crowdfunding – there are plenty of ways that entrepreneurs can secure the necessary capital needed in order create successfully launch their successful venture! So take some time today to thoroughly research each option before deciding which is best suited for your unique situation! The professionals at Kenbry Capital can help you become successful through our franchise financing program.
by Kenbry Capital | Jan 27, 2023 | Franchise Financing
Investing in a franchise business is a great way to build wealth and gain financial freedom. With the right plan, you can start your own franchise business without needing a lot of capital upfront. The ROBs Plan is the perfect solution for entrepreneurs who want to get into franchising but don’t have the resources or know-how. Here’s what you need to know about starting a franchise with the ROBs Plan.
What Is the ROBs Plan?
The ROBs Plan stands for “Retain Ownership But Sell (ROBs)” and it is an innovative way of starting and managing a franchise business without having to invest large amounts of capital upfront. Instead, you will retain ownership of your company but sell off pieces of your business over time in order to generate revenue that can be used for reinvestment or expansion. This will allow you to grow your business without having to take on debt or other forms of financing.
How Does It Work?
The process begins with you selecting a suitable franchise model and securing legal advice from experienced lawyers and accountants in order to ensure that all paperwork is completed correctly. Once this is done, you will need to create detailed plans that outline how the franchise will operate, including marketing strategies, pricing structures, staff requirements, and more. Once these plans are set up, you can start selling parts of your business in exchange for equity or cash payments which will be used as investments in areas such as marketing, equipment purchases, or staff salaries. This process should be repeated regularly until you have reached your desired level of growth.
Advantages Of The ROBs Plan
The major advantage of using the ROBs Plan when starting a franchise is its flexibility; it allows entrepreneurs to start their own businesses without having to take on large amounts of debt or risk their personal assets if things don’t go according to plan. Additionally, as owners are able to keep control over their businesses throughout the entire process, they are able to make decisions regarding how they want their franchisees to run without having too much external influence from investors or lenders. Finally, by selling pieces of their businesses over time instead of taking out loans from banks or venture capitalists, entrepreneurs can minimize risk while still being able to grow their companies at an accelerated rate compared with traditional methods such as bootstrapping or angel investing.
Starting a new business can be intimidating but with the right plan, it doesn’t have to be complicated! The ROBs Plan offers entrepreneurs an innovative way of getting into franchising while minimizing risk and allowing them to retain full control over every aspect of their operations. If you’re looking for an easier way into franchising then give the ROBs Plan a try – it could help you realize your dreams faster than ever before! With careful planning and implementation on your part – there’s no telling how far your business could go!
There are numerous benefits to opening a franchise business, such as having an existing marketing team and brand recognition. However, there are still financial hurdles to making your dream of operating a franchise restaurant or store a reality. The professionals at Kenbry Capital can help you become successful through our franchise financing program.
by Kenbry Capital | Jan 20, 2023 | Franchise Financing
Franchising is a great way to start a business. Not only can it provide you with the necessary guidance and resources to be successful, but it also offers security in knowing that you’re part of a larger, established company. But how do you fund your franchise? Read on to find out more about the different options available for financing your franchise.
Self-Funding
If you have sufficient funds, you may choose to self-fund your franchise. This option is great if you already have enough money saved up or can access capital from other sources such as investments, retirement accounts, family and friends, etc. However, self-funding does have its downsides including increased risk due to a lack of external support and a potential lack of liquidity.
Small Business Loans
Small business loans are one of the most popular ways to finance a franchise. These loans typically come from banks or other lending institutions and can be used for purchasing inventory, hiring employees, etc. Small business loans are usually offered at competitive rates and come with flexible repayment terms. However, they typically require collateral such as real estate or equipment and may take some time to process depending on the lender’s application requirements.
Franchise Financing
Franchise financing is another popular option for funding a franchise. Many franchisors offer financing programs that make it easier for new owners to purchase a franchise without having to come up with large amounts of capital. These programs often include low-interest rates and flexible repayment terms that make them attractive alternatives to traditional small business loans. Additionally, many franchisors will provide additional support services such as training programs and marketing assistance as part of their financing packages.
Starting your own business can be an exciting venture but also a daunting one if you don’t know where to begin when it comes to financing your new endeavor. The good news is there are several options available for funding your franchise including self-funding, small business loans, and franchise financing programs offered by many franchisors themselves. Whichever option you choose for funding your franchise will ultimately depend on your financial situation as well as the specific requirements set forth by the franchisor or lender involved in the process. With this guide in hand, however, you should now have all the information needed to decide how best to move forward with starting up your franchise!
The professionals at Kenbry Capital can help you become successful through our franchise financing program. Contact us today!
by Kenbry Capital | Jan 13, 2023 | Franchise Financing
Owning a business can be incredibly rewarding, but it can also be difficult to get the funding you need to get off the ground. Thankfully, there are various financing options available to franchise owners who want to open a business or expand their existing one. In this blog post, we’ll take a look at 5 of the best franchise financing options and how they can help you achieve your goals.
- SBA Loans – The Small Business Administration (SBA) offers loans up to $5 million that the government guarantees. These loans are typically used for startup costs, working capital, and equipment purchases. The credit requirements are fairly strict, but if you meet them you can enjoy lower interest rates than most other financing options.
- Merchant Cash Advances – Merchant cash advances provide businesses with quick access to funds in exchange for a percentage of future credit card sales. This is an ideal option for businesses that have high credit card usage and need short-term funding quickly.
- Equipment Financing – If you need money to purchase equipment for your franchise, equipment financing is a great option. It allows you to finance up to 100% of the equipment cost and spread out payments over time with low-interest rates.
- Bank Loans – Banks offer loans specifically designed for franchises which may include lower interest rates than other types of financing as well as more flexible repayment terms. However, bank loans typically require good credit and collateral so they may not be an option for everyone.
- Crowdfunding – Crowdfunding is becoming increasingly popular among entrepreneurs looking for startup capital without taking on debt or giving away equity in their businesses. You can use crowdfunding platforms like Kickstarter or Indiegogo to connect with potential investors who could provide the necessary funds in exchange for rewards or recognition from your business once it succeeds.
There are many different types of franchise financing available these days which makes it easier than ever before to start up a new business or grow an existing one Finding the right type of financing is key so make sure you do your research before deciding which route is right for you With so many options available its important that you find one that fits your needs and budget so that you can focus on running a successful franchise.
There are numerous benefits to opening a franchise business, such as having an existing marketing team and brand recognition. However, there are still financial hurdles to making your dream of operating a franchise restaurant or store a reality. The professionals at Kenbry Capital can help you become successful through our franchise financing program.
