It's almost impossible to talk about the future of the world of financing and loan-providing without acknowledging the impact of 2020's global crisis. According to Forbes, the significant shift to digital trading is here to stay after the reliance on physical locations lifted almost overnight.
This sudden shift in focus demonstrated once and for all that the world of finances no longer relies on physical trading floors; paving the way for a significant digital revolution for financing and loan-providing franchises.
Financing and loan-providing franchises offer an essential service for all American businesses, regardless of their size or the economic climate. Most franchises in this sector focus on commercial capital lending, helping entrepreneurs access the necessary capital to lubricate innovation. Without this essential financial service, many small, locally-owned businesses would never get off the ground.
Commercial finance is a trillion-dollar industry and one of the most lucrative business sectors in the United States. Every business requires capital and collateral at some stage - financing and loan-providing franchises offer financial assistance to businesses of all sizes, from the smallest local operations to the pioneers of corporate America.
Financing and loan-providing franchises have an almost infinite client base across America. This is because of the millions of US businesses that require access to capital to help their operations thrive and survive.
At some stage, all businesses need access to additional capital - from corporations who routinely need money to service short-term obligations to small businesses who need an appropriate funding model.
So, if you’re experienced in the world of finance and would like to go it alone, a financing and loan-providing franchise could offer you the opportunity to support American industry while earning considerable rewards.
Franchising
Entering the loan industry as an independent new starter is a problematic starting point. Without a prior reputation, it's difficult to convince new clients that you're a serious contender to support their business growth.
Investing in a financing or loan-provding franchise, however, is more likely to give you the start you really need. When you take on a franchise business, you inherit the parent company's reputation and business acumen, giving you a stable position that helps your new operation attract a broader client base.
Parent companies don't just hand over the keys to their business, though. Most parent companies offer comprehensive training to ensure that your new business is qualified to sustain their brand reputation. This represents an excellent opportunity to hone your skills - learning from experienced experts while securing a solid foundation for your franchise business.
In addition to comprehensive training, many franchise partners offer a range of HR functions, making sure that you run your company in compliance with business-, employment-, and financial regulations. Those are the things that keep most business owners awake at night, so assistance with compliance is a valuable asset.
When you invest in a financing or loan-providing franchise, you inherit a system that works - with customer testimonials, a catalogue of previous success stories, and evidence that your adopted infrastructure gets results for clients.
Most independent companies that startup without the expert support of a franchise partner often struggle to impact the marketplace. One of the main reasons for this is simply the lack of reputation.
Financing and loan-providing franchising offers:
- A ready-made track record
- A reputation reinforced by customer recommendations
- HR and training support
- Ongoing business support
Facts About Financing and Loan-Providing Franchises
Financing and loan-providing franchises offer entry into a multitude of capital solutions.
You might already have experience in residential financing - helping individuals or small businesses build the collateral for premises and homes. Alternatively, you may have experience in business lending programs, assisting companies in financing short-term projects. Or your area of interest may lay in helping the consumer reach their funding goals for loans and mortgages.
Some personal financing businesses offer credit repair packages. These help individuals and companies build a credit rating that allows them to apply for loans, credit cards, and mortgages in the future.
Real estate is considered a relatively safe environment to grow a financial portfolio. Therefore, financing and loan-providing franchises that offer mortgage products on buildings often receive excellent returns and the security of brick-and-mortar investments.
Student loan consolidation and business refinancing is another area of personal finance that is popular with financing frachises, offering debt relief to ex-students.
According to S&P Global Market Intelligence, the lending industry continues to build almost exponentially, with growth in the sector reaching as high as 8% pa. Of the US’s fifteen largest banks, thirteen reported an increase in lending within the business- and commercial sector in November 2021.
The average salary of a loan officer is $77,000, according to the Department of Labor.
Financial services constitute between twenty and thirty per cent of total service market revenue, and around 20% of the total Gross Domestic Product in developed countries - representing the market's vibrancy.
Franchising Vs. Independent
All companies need startup collateral, but independent companies start from a position of weakness compared to franchises who enter the marketplace with the ongoing guidance and support of an established partner.
Franchising is an attractive business model for other financiers and loan providers because the company's operational infrastructure has been proven robust enough to sustain healthy growth. On the other hand, an independent company starts from scratch with no evidence of robust governance, which puts a return on investment under question.
Existing moneylenders and banks tend to prefer franchise businesses as they come with a reputation and a history of sustainable growth and profit. Independent companies often fail to convince lenders of their market viability, presenting an immediate barrier to success.
Financing and loan-providing franchises tend to hit the ground running, maximizing the benefits of working with established experts in the field.
Financing and Loan-Providing Franchises
Check out Franchise Direct's excellent choice of financing and loan-providing franchises, and help American businesses and consumers gain the funding they need to make their next positive step toward the American dream of ownership.
You can also check out many more exciting opportunities, such as Accounting and Financial Franchises, here on Franchise Direct.