Buying and running a franchise is a great way to step into entrepreneurship or to expand the range of your current business. It gives you access to an established brand and a templated and well-tested business model; customers in the area already know you and walk in knowing exactly what they want and what to expect. If you run a good establishment, don’t have a lot of stiff competition, and are located in an area that houses your target audience, the chances are that you can make good profits right from day one!
However, to get a franchise is a costly affair, and not everyone has that kind of cash lying around. However, getting external financing help can easily put your dream franchise within reach.
Here is how alternative funding can help :
Most franchisors offer very competitive financing options to entrepreneurs interested in buying a franchise from them. However, they don’t cover the entire cost. The most favorable terms you will find will amount to around 75% of the price.
You can use alternative funding such as cash advances to fill the gaps with supplemental capital.
Alt-financing also comes in handy when you have to move quickly to secure a franchise deal. Other more traditional means of funding, such as Banks or Credit Unions, are usually long-winded when it comes to approving credit applications. Many of them balk at giving money to small business owners or entrepreneurs with bad credit ratings.
Alt-lenders are much faster and, in some cases, advance the money in just a couple of business days.
Often business owners think securing the franchise is the last hurdle when it comes to investment. Sadly, that is usually not the case! There are many steps between buying a franchise and opening the door to customers - and all these steps come with their own costs. While much of these will already be in your financial plan, there are still likely additional costs on marketing, customer acquisition, staff, and more.
Small business owners can always bank of alt-lending companies to ease their cash-flow bottlenecks.
Buying and running a franchise is an easy and profitable way to become a business owner. It takes all the guesswork, stress, and brand building out of the picture and allows you to work as a part of a national/international brand. But the initial costs are on the higher side. However, that doesn’t mean you have to forgo the benefits of acquiring and running one.
Certainly not with us around! Call the Mantis Funding team (at 877-494-1499) to determine how you can own the franchise business you always dreamed of.
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