Franchises exist in almost every industry imaginable, and they are considered the most turn-key business model available. However, before you decide to buy into a franchise, it helps to know a bit about how they work.
Franchises are great for people with little business experience
Businesses often require entrepreneurs to wear many hats at once, from sales to marketing, HR, and everything in between. Franchises have most of those aspects built into the business model. The marketing and branding are already there, and widely recognized by customers. Franchises also take care of training, HR, and much more. This means franchise owners can focus more on running their businesses than running around to perform other functions that are taken care of by the parent company.
How do you find financing for a franchise business?
When you want to buy a franchise, the parent company will tell you what you need, from the down payment to real estate, potential construction, start-up capital, special equipment, and more. Some new franchise owners opt for SBA loans to cover the capital to launch their businesses. Some may need equipment financing options or working capital for ordering supplies and inventory. Still others may need commercial real estate financing to cover the cost of acquiring property and making the necessary build-outs to meet the franchise’s specifications.
Overcoming financial challenges
Currently, traditional lenders are raising their requirements on loans, and individuals launching their first franchise might be seen as “high risk” clients. Fortunately, there are alternatives to traditional loans that are more accessible and designed specifically for franchises. Franchise financing helps new owners overcome any funding challenges without making it impossible to turn a profit. Additionally, franchise financing can be arranged quickly so you can launch your franchise without any delays due to funding.
Learn more about franchise financing solutions
Golden Century Lending provides franchise owners with the funding they need to launch and maintain operations. From working capital to equipment, and even real estate, we strive to provide the most comprehensive financing for franchise owners nationwide. Contact our offices today to get the funding you need.