Are you thinking of starting a new franchise?
While yes this is a great business option it can also be costly. Many do not have the start-up capital in their personal finances and require a new franchise business loan. This type of business financing is designed specifically for starting up a new franchise, able to cover all costs from buying into the franchise, facility, equipment, supplies and so on.
The Benefits of a New Franchise business Loan
A new franchise loan is designed to cover all areas of the start-up for a new franchise. Unlike other business loans that have short loan terms and high-interest rates those receiving new franchise business loans are able to take advantage of the benefits of a new loan. Franchise loans often have long loan terms to keep this financing option affordable to a new franchise owner. New franchise owners are able to take advantage of the record low-interest rates of 2.75%. With low-interest rates and long loan terms franchise businesses are able to repay the financed money with ease.
Common uses for New Franchise business loans
- New construction
- Real estate purchases
- Working capital for the new franchise business
Lender Requirements for New Franchise Business Loans
Every lender has their own requirements for those aspiring business owners looking to receive a business loan. Commonly the borrower is required to have a clean credit history and good to excellent credit rating. You can go to a credit reporting company for a copy of your credit history with your credit score, this will give you the opportunity to make any needed corrections if there are errors before applying for a new franchise business loan. The borrower may also be required to place an asset as collateral on the loan or place a down payment, this secures the loan and offers the lender reassurance that you will repay the loan. Many lenders also offer unsecured loans that do not require a down payment or collateral. To know the lender requirements and what type of loan you are eligible for contact a local lender for more information today.
Get the best New Franchise Business Loan Today
Visiting local lenders, or even surfing through lenders on the internet can get you an idea of the new franchise business loans that you will be eligible for. Many lenders can process your loan application in 24 hours or less, getting you the start-up money needed for a new franchise.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.