Franchises are tried and true business models, which can lower your risk when you’re first starting out. A franchise can be a good way to quit your day and become self-employed. Unless you have a sizable bank account, you’ll most likely need to look into franchise financing. Although the franchisor often will have financing plans, you may find yourself coming up short. Franchisors want to see entrepreneurs risk some of their own money. Don’t just accept their offer. Here are three tips to get the best franchise financing package.

Talk to franchise financial specialist.

A franchise specialist may have multiple lenders that can provide options. You can look at the terms and conditions and compare different packages to see what works for your business. A specialist may also help you explore different strategies that give you the best deal.

Check to see if you qualify for government programs.

The SBA offers franchise financing through their loan program to business owners who qualify. Some organizations have special programs for veterans and minority businesses. There may benefits for businesses that open in underserved and rural communities.

Don’t give up if one lender rejects you.

You’ll need great credit to get an SBA loan. Their standards are pretty high. Banks may also have strict regulations about who gets a loan and who doesn’t. Alternative lenders may have more flexibility. Don’t let one rejection keep you from talking to different lenders.

Do Due Diligence

You don’t have to accept the first offer. Read through the contract to make sure you understand all the terms and conditions of any loan and financing option. You may want to reach out into your network of friends and family for funding, but then again, maybe you don’t.  Be creative when trying to finance your franchise venture.

Contact Span Capital for more information about our franchise financing package. We can help you reach your dreams.