Financing Your Business
Own Franchises.com is a Valuable Resource
Through our referral network, Own Franchises.com assists clients in identifying pre-screened sources for necessary financing. In addition to financing sources, we also have access to Franchise Attorneys, Business Accountants, and CPA's to provide additional client services.
Commercial Lenders - are attracted to providing financing for franchised businesses based on their strong success rate and ongoing support provided by the Franchisor.
Non-Traditional Financing - In accordance with the "Employee Retirement Income Act" (ERISA) of 1974, retirement unds can be put to work at any time to start, buy,or invest in a business. This financing strategy permits individuals to actively invest
in a franchise without taking taxable distribution or incurring penalties. Many people leaving the corporate world for business ownership take advantage of this program by converting portions of their existing retirement plans into self-directed IRA, or self-directed 401 (k), which gives them the freedom to make non-traditional
investments in franchises. Who better to invest in than yourself?
Franchisor Financing - Many Franchisors provide either direct or third-party financing to qualified parties through their being listed in the SBA Franchise Registry. Securing financing for a franchise business is not a difficult task for qualified
candidates. Typically 20% to 30% equity in required to secure commercial
or SBA financing.
In Summary - Beyond necessary personal net worth criteria, franchise companies and lenders also look at the individual, their background and character. They want franchise business owners that they believe will help their systems grow.