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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. Being 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.

Putting your funding in place is one of the most important steps in making your decision to join the Bin There Dump That team. 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 receptive to new small business startups!

Banks are lending on Home Equity again. Many new business startups in the US use home equity as a main source of financing. Exploring the idea of a home equity loan or line of credit is a good place to start.

Many Bin There Dump That franchise operators 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:

  1. The quality of the franchisor. Lenders may require less down and lower collateral for good franchisors like Bin There Dump That.
  2. The quality of the franchise operator 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
  • The borrower has cash reserves for growth after the down payment
  • The borrower has an outside source of income (working spouse or a semi-absentee business that can be started while the borrower keeps their present career.)
  • The borrower has 50% collateral to loan amount ratio.
  • The borrower has strong management skills.
  • The borrower has a personal 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.

Bin There Dump That has established relationships with financial institutions and lending companies who specialize in SBA loans and 401K rollover. These companies have been carefully selected to ensure that you are afforded the best possible service at a fair price for their service. To access our lending partner's information we request that you book an intro call with a Bin There Dump That representative. There is no cost to you for an initial consultation and speaking with them does not obligate you in any way.

Discover more ways you can fund your franchise venture here

Complete Financial Guide

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