Because it already has a proven business model and set of products, opening a franchise business can be quite lucrative. On the other hand, you may need a large amount of up-front capital to do so. Check out these ideas for obtaining the working capital to carry forward with your dreams:
Traditional Bank Loans
This is the typical loan most folks tend to seek out first. Keep in mind that the application and approval process can be a bit arduous with some commercial banks, and not everyone who applies is able to obtain a loan.
Small Business Administration (SBA) Loans
SBA loans may be a great option for those looking to open up a franchise business. This funding option is backed by the U.S. federal government and administered through numerous private lenders and finance agents. SBA loans typically come with low rates, generous repayment terms, and other perks.
Crowdfunding
Being a rather new method for obtaining funds, crowdfunding is in vogue these days. It refers to the practice of obtaining funding for a new venture by using the internet to raise many small amounts of money from a large pool of people. No harm trying, especially if you already have a significant web presence.
Alternative Lending
A full spectrum of financing options is available commercially under the umbrella term “alternate lending”. Alternative lenders often have easier application processes, less stringent requirements, and speedier funding delivery than loans from a traditional lender.
Family and Friends
This may be the first option that you think of for obtaining the funds you need. Many professionals suggest that if you do so make sure the loan terms are stated in a written agreement. You would not want a misunderstanding involving a significant sum of money to spoil a close relationship.