Franchise Financing 101: How to Fund Your Business
Dreaming of starting your own business? Finding the proper franchise involves evaluating different options and considering the potential in various industries.
However, the financing and logistics of making your vision a reality require careful planning. It is important to consider every detail. If you are struggling to determine which business opportunity aligns with your skills and financial situation, consider consulting a franchise consultant. Experienced in the industry, they can help you identify the right franchise and guide you through obtaining financing for your new business venture.

Whether you're investing in a franchise or still researching, we're here to help. Here's an outline of common franchise financing options for franchisees. Read on to learn how to fund and start your franchising journey.
Getting Help from Your Franchisor
Franchisors often help new franchisees by waiving the franchise fee and partnering with lenders to secure startup funds.
Check your franchisor's website or chapter ten of the franchise disclosure document for startup assistance. Compare their financing terms with other sources to find the best option.
Applying for a Franchise Business Loan
Traditional loans can provide financing for a franchise. It is common for new franchisees to obtain loans from commercial banks or credit unions. Since starting a franchise involves an established brand name and proven business model, it may be easier to secure financing compared to starting a new business. Banks might feel more confident in the investment and therefore more willing to provide the necessary funds.
Remember, commercial banks will still apply their lending and underwriting policies to your franchise. You will need a good credit history and net worth similar to any other commercial loan. Collateral may also be required for a traditional loan.
The 7(a)-loan offered by the SBA is the most common type of loan for new franchisors. Unlike traditional loans, SBA loans are partially guaranteed by the government. Additionally, SBA loans typically offer higher amounts, lower interest rates, and longer repayment periods. However, SBA loans are still similar to those provided by commercial banks and credit unions. To obtain an SBA loan as a new franchise, applicants must apply through approved lenders.
Qualifying for Franchise Financing
Securing financing can be tough for franchisees. You must prove your ability to repay any loan. Lenders will review your credit history, so check your report and be ready to explain any issues. Bring your business plan, marketing strategy, projections, and cost analyses. This preparation will present you as professional and improve your chances of getting a loan.
Hundred Acre Consulting
Determining the optimal approach to finance your new business venture is an essential yet challenging aspect of achieving success. If you are concerned about selecting the appropriate franchise and financing options, Hundred Acre Consulting can provide assistance. With extensive experience, we can aid you in identifying the most suitable franchise for your skillset and navigate you through the process of establishing a profitable business.
Ready to find the franchise for you? Contact Hundred Acre today, and let’s get started!










































