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FRANCHISE FINANCING & CONSULTING
 We assist franchisees in obtaining financing for their new business whether it’s their first, second or third location. For many franchisees this is the first time they have started or owned a business and franchisors are limited in what they can do to assist franchisees with their business plan, especially the all important profit and loss plan.
Our recommendation is to obtain a loan partially guaranteed by the U. S. Small Business Administration or SBA. The great news is the most start-up businesses qualify and using an SBA loan has several advantages:
- Lower Cash Down Payment: The regional and nationwide SBA lenders we work with normally require 25% to 30% cash down payment from the owner(s)
- Longer Loan Repayment Term: Repayment varies with the type of loan and ranges from 5 years to up to 25 years for real estate. Most non-real estate loans are at 10 years
- Lower Interest Rates: SBA guaranteed loans have their interest rate based on the New York Prime rate plus a margin of up to 2.75% - generally this interest rate is less than non-SBA loans
- No Balloon Payments: All SBA guaranteed loans are fully repaid based on their term of 5, 7, 10, 20 or 25-years
- Working Capital Included: Working capital (the difference between your business’ initial monthly sales and its expenses) may be included as part of the loan and is typically around $50,000
- Loan Amounts: From $150,000 to $2 million
- You Can Finance: Equipment, machinery, furniture, fixtures, inventory, building, leasehold improvements, business debt, first year's salary, and working capital
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