How to Finance Your Dream Business
Popular Types of Franchise Financing
Even a franchise opportunity with low startup costs like PremierGarage still requires a sizable investment. Choosing what kind of funding to use will depend on what suits your personal financial situation best. Most of our franchise owners have used our in-house financing, 401(k), Small Business Administration loan (SBA) or a Bank loan. Read more about each option below.
PremierGarage In-House Financing
Many of our new owners choose PremierGarage’s in-house franchise financing to help fund their initial fees and startup costs. We offer in-house financing of up to $44,000 to qualified candidates. Just talk to your franchise advisor for details on how to apply.
Use Your 401(K)
Using your 401(k) to fund your franchise business is an excellent option if you’d rather not take on new debt. PremierGarage can offer you appealing ways to finance your franchise business using your 401(k). This can be an attractive option as there are no penalties
Small Business Administration Loan
Backed by the U.S. Small Business Administration, SBA loans are a great franchise financing option. They differ from traditional bank loans by which the SBA guarantees a portion of the loan amount, making them more attractive to lenders. SBA loans can also be easier for small businesses to secure and often have better rates and terms than loans from a bank. Speak with one of our franchise advisors to learn more.
Bank Business Loan
A commercial loan from a bank can provide franchise financing. Like any loan, approval will depend on a personal credit score and in some cases an upfront deposit. In any case, traditional business loans have varying interest rates and installment terms.
Other Types Of Franchise
Financing Some franchise owners use their personal savings, home equity loans or a severance. Or they ask family and friends to invest money in their new business. Sometimes this money is simply a gift, or they can be mini loans that require repayment. Another relatively new franchise financing option is crowdfunding or raising money through online companies. Just be mindful of personal and professional boundaries; it is advised to set clear terms and contracts that are fair to both parties. With crowdfunding, investors may expect to receive early access to products and services, shares in the company, and other perks in exchange for their investment.
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