So you’ve decided you’re interested in investing in a franchise or business opportunity, but your missing one key detail! You don’t have enough money! You need capital to invest in the franchise, buy supplies, pay your employees, pay rent/premises, pay royalties, and your own salary- you name it you need money for it all…So where do you get the necessary money from?
For many start-up young entrepreneurs financing the business comes from family, relations or friends. However, if you can’t borrow the investment money from family or friends, you can avail of the following sources for possible financial assistance. One important aspect in applying for funding from a financial institution or business professional is for you to have created a business plan prior to your funding application. This will be crucial in someone deciding if you are worth investing in, and in some cases your family or guardians may have to act as a guarantor for your loan.
Financing for Young Franchisors...
1. You may get a loan through a bank. Contact your local banks and financial institutions who you may have a banking history with. Approach the banks with your business plan and also with the prior acknowledgement that you have a guarantor in place if one is required.
2. You may get financing through the SBA guaranteed loans. The Small Business Administration is set up to help potential individuals set up their own franchise or business. The SBA annually award young entrepreneurs through various programs, the necessary funding and resources to set up on their own.
3. You may get financing with a franchisor loan. If you are entering into a particular franchise or business opportunity, some franchisors will be willing to help you finance the business operation. When you are conducting your research of a franchise or business opportunity make sure you also check to see if the franchisor will provide financing for the investment. If you have any queries relating to franchising and financing sources, please let me know and I'll write back to you... Thanks and have a great weekend...! Franchise Reporter
Some Franchise Business Humor for the weekend...