When it comes to investing in a franchise, many prospective Franchise Owners will need to partner with a franchising financing lender to acquire a loan for their franchise.
But, there are a lot of different options out there for franchise financing. To help prospective Franchise Owners find the right loan to open their franchise, we’re going to break down how to choose the right franchise financing lender. First, we’ll discuss who offers franchise financing, qualifying for franchise loans, and who the top franchise lenders are.
Who Offers Franchise Financing?
In some instances, the franchisor may offer loans to help you get started. But, if that isn’t the case, you still have some other options. Here are four ways to acquire capital for a franchise loan.
- Regional and community banks – Typically offer low-interest rates, long terms, and high loan amounts, as well as personalized streamlined decision making.
- Small Business Administration (SBA) – SBA loans can sometimes be tough to get, but they do offer long terms and affordable interest rates.
- Online Lenders – Online lenders may require higher interest rates than banks, but it may be worth it for those looking for a more efficient experience.
- Nonprofit Lenders and Community Development Financial Institutions – Offer affordable financing for smaller loans and good options for underserved businesses—such as women- and minority-owned businesses
To read more about these options for franchise financing, check out this recent article.
How do you Qualify for a Franchise Loan?
Whether you’ll be able to qualify for a franchise loan depends on a few different variables. First, it will obviously depend on the source of the loan. They’ll be looking through your application to see whether or not you’re a good fit for them for a loan.
To give yourself the best chance at acquiring a loan for your franchise, make sure you have the following documents ready to submit:
- Copy of a signed franchise agreement
- Statement of personal history
- Personal and business financial statements
- Business license
- Records of previous loans
- Tax returns
- Resume
- Copy of business lease
For more tips on getting a franchise loan, read our recent “How to Get a Franchise Loan” article.
What are the Top Franchise Financing and Lending Partners?
There are a lot of partners you can work with to secure your franchise financing. Here are some of the top franchise financing companies available today:
Top Franchise Financing Partners
- BoeFly
- SmartBiz
- Funding Circle
- OnDeck
- Crediby
- ApplePie Capital
How to Choose the Right Frachise Financing Lender for you
Securing financing can sometimes take some real boots-on-the-ground effort, especially if you are going from bank to bank and submitting paperwork multiple times. But there is a more efficient way to do it – that’s where BoeFly comes in.
How BoeFly Makes it Easy for You to Find the Right Lender
Wouldn’t it be nice if you could submit one application for a franchise loan and then get matched up with the right lender that fits your needs?
That’s exactly what we do here at BoeFly. Our one-step online application simplified the lending process. Just enter your information once, and you’ll be matched up with high-quality lending options. Throughout the entire process, you’ll have real-time visibility, as well as access to our lending experts to address all of your questions.
When you partner with BoeFly for your franchise financing needs, we’ll connect you with the right lenders while avoiding those that aren’t a good fit.
Ready to get the franchise financing you need to carry out your dreams of owning your own franchise? Get started today by partnering with BoeFly!
