You’re ready to begin your franchise journey and may be asking yourself, “How can I fund my franchise?” We understand how crucial this question is when starting a business. You might be surprised at the resources available to finance your franchise! Below, we’ve outlined several funding methods, including the pros, cons, and typical requirements for each.
401(k) Rollovers (ROBS)
Utilize your retirement funds without incurring early withdrawal penalties or taxes. This method allows you to invest up to 100% of your retirement savings into your franchise, potentially reducing debt and accelerating profitability. ROBS can also assist in meeting cash injection requirements for other funding sources.
Unsecured Loans
These loans are based on your creditworthiness and require no collateral. Typically, a minimum credit score of 700 is needed, along with a clean credit history and low credit utilization. Unsecured loans can be processed swiftly, often within two weeks.
SBA Loans
While the Small Business Administration (SBA) doesn't directly provide loans, it offers guarantees on up to 90% of the loan amount to qualified borrowers. This reduces the lender's risk and can make securing a loan more accessible. SBA loans are ideal for funding franchises and can be obtained within 60 to 90 days.
Home Equity Lines of Credit (HELOCs)
Leverage the equity in your home to finance your franchise. HELOCs typically offer lower interest rates and can be established within 30 to 60 days. They are a cost-effective option for funding your business venture.
Partnering with Leading Funding Experts
To ensure you receive the best financing options, we've partnered with industry-leading funding companies. Their expertise in the franchise sector can help you identify customized solutions that align with your financial goals.
Finding the right plan to support the success of your business can be challenging. Our funding partners understand every aspect of the franchise industry and can guide you toward the best options tailored for you.
Contact Own My Franchise today at
(716)-647-6055
to explore the funding solutions that best fit your franchise goals.
