Putting Your Funding Package Together
How to get Bank or SBA Funding
Congratulations on the steps you've taken so far in your franchise investigation! Many people want to own their own business, but for one reason or another don't even make it this far in the process - the fact that you are ready to start exploring financing options says a great deal about your desire to become a franchise business owner! As you embark on your journey of franchise investigations, one of the most important steps is to secure financing.
By the time you are ready to make your final decision on a Bin There Dump That franchise you MUST have your funding in place. The current environment in the lending markets makes selecting the right resource for your funding very important. As of this writing, credit markets in the United States are still tight but are starting to "thaw."
- Banks are beginning to lend on Home Equity again.
- Many of our franchisees are utilizing their retirement to fund the business through a government overseen program called Rollover for Business Start-Ups. No penalty, no interest rate, no immediate repayment to your retirement account. We can introduce you to a company that can talk you through this option.
SBA loans are attainable but there are eligibility factors that have to be met to attain SBA financing. Two main factors affect the ability to borrow today:
- The quality of the franchisor. Lenders may require less down and lower collateral for good franchisors like Bin There Dump That.
- The quality of the franchisee candidate.
For the Bin There Dump That franchise candidate, SBA lenders consider:
- The borrower has a 25-30% cash payment into the total projected cost of the business
- Has cash reserves after the down payment
- Has an outside source of income (working spouse or a semi-absentee business that can be started while the borrower keeps their present career.)
- Has 50% collateral to loan amount ratio.
- Has business ownership experience, industry experience or strong management skills.
- A credit score above 700.
Depending on the funding source, funding can take a few weeks to a few months. The financing part of your business investment should be as complete as possible as you decide on a business. If not, this could delay your progress.
There are two Bin There Dump That financial partners. These companies have been carefully selected to ensure that you are afforded the best possible service at a fair price for their service. These companies have established relationships with numerous lenders that specialize in one or more parts of franchise financing. To access our lending partner's information we request that you register your contact information. There is no cost to you for an initial consultation and speaking with them does not obligate you in any way.
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