Using SBA Loans for Franchise Financing

Start your small business franchise off on the right foot with SBA loans. Whether you’re looking for financing to launch your business or you need a way to accelerate your growth, SBA loans provide an excellent form of franchise financing. Improve your working capital and build a successful franchise starting today.

An SBA loan is distributed by the Small Business Administration and is available for franchisees to build their small business. Unlike a traditional bank loan, these excellent loans are available even if you haven’t been in business for a lengthy period and don’t have a perfect credit score. You can choose the right SBA loan to cover your expenses and enjoy a tailored financial solution to your particular hurdles.

There are two basic options available for your franchise: SBA 7(a) and SBA 504. An SBA 7(a) is a general loan that covers all your typical small business needs. From working capital to commercial real estate, it’s a popular option to cover everything you need.

The SBA 504, on the other hand, is a more specialized loan that is designed to offer you the best rates for commercial real estate or heavy equipment. Unlike an SBA 7(a), the 504 is best used for a narrow range of large purchases.

Each of these loan options can be used to grow your franchise. As a new franchise owner, you’ll have a long list of the upfront and ongoing expenses. If you want your franchise to succeed, you must find creative solutions to your financial needs. Most franchises come with franchise fees and royalty fees. These are either ongoing or one-time expenses that are necessary in order to operate a business as a franchise.

Once you cover all the franchise-specific costs, you have the typical ongoing costs that come with any business in your industry. Payroll, taxes, inventory and other expenses can be costly until you begin to earn an income from your franchise. SBA loans provide you with the financial safety net you need to foster a thriving business.

Discover today how you can make the most of your franchise financing options and compete with other businesses in your industry. Whether you’re opening a restaurant, retail store or other franchise option, learn how you can propel your company forward using competitive SBA loans that are made available specifically to small business owners like you. With the right financing, you can create a successful franchise in your location.

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