Creative Ways To Finance Your Franchise Purchase

If you are looking to purchase a franchise, one of your first considerations may be the cost. After all, you are purchasing an established business, which offers many benefits, such as name recognition, a web presence, and back-office support.

Border Magic specializes in decorative concrete and landscape curbing, edging, and walkways. We make the process to purchase a Border Magic franchise in your area easy and clear-cut. After you meet with us, you will have a good understanding of our business model and if it's for you. Below, we'll take a look at some creative ways to finance your franchise purchase. Contact us to get started today!

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SBA Loan

Small Business Administration (SBA) loans are one of the most popular ways to finance your franchise purchase. These loans are backed by the federal government and have helped thousands of small businesses across America get started. The SBA partners with local banks, which love helping locals get financed. Because you are purchasing a franchise with an established history, there is inherently less risk, so banks are usually eager to lend you a helping hand. That being said, the federal government has implemented strict qualification standards, so expect a longer-than-normal lending process with this franchise financing option.

Partners or Investors

A good number of small business start-ups here in the U.S. are started with multiple owners and/or investors. By pooling your money with the money of other partners and/or angel investors, the initial cost of owning a franchise can seem not so overwhelming. It also offers less risk, which many potential business owners are attracted to. One of the only drawbacks to investing with others is that you'll be splitting your profits with others.

Franchisor Financing

Many franchise brands will offer their own in-house financing or partner with other partner lending institutions. This is usually a great way to get financing because their partner lending institutions are intimately familiar with the franchise, so the paperwork on your end is usually cut in half. Some will even offer equipment financing, effectively making this financing turnkey. This makes the loan process faster, so you can be on your way to franchise ownership quite quickly. Plus, the payback terms are usually quite generous, so you can focus on getting your business going without having to worry about a monstrous debt payment hanging over your head.

Commercial Bank Loan

A commercial bank loan is a traditional loan from a lending institution, such as a bank or a credit union. Traditionally, these are one of the hardest types of loans to qualify for because of the amount of risk involved for the bank. Expect a lengthy application process that is quite thorough. The lending institution will most likely want to review your business plan, as well as your personal credit.

Personal Loan

A personal loan is much like a commercial bank loan except you are putting your personal credit (and assets) on the line. You have to have good credit to receive a personal unsecured loan, and you have to be willing to risk your ability to borrow for your own needs in the future. However, this can be a great way to raise franchise funding quickly, and your credit score may even improve, too.

Alternative Lenders

Alternative lenders have exploded in recent years, taking advantage of the slow process and the headaches caused by traditional lenders and loans. Alternative lenders usually have less strict requirements, and many promises quick turnaround times. This can be a great franchise financing option. In addition, many offer a variety of different types of loans to meet your individual needs. Do be aware you pay a bit more for alternative loans in exchange for all of these benefits. However, if you cannot qualify in any other way, alternative loans are worth considering for your franchise financing.

Crowdfunding

Crowdfunding has become a popular way to raise money for your business start-up. Here, you simply set up a page on a crowdfunding site, and solicit donations from your friends, family, work colleagues, and even strangers. Do your research because some crowdfunding websites support specific industries and businesses, which could be beneficial to your franchise financing.

OPEN A BORDER MAGIC FRANCHISE TODAY

Because Border Magic offers such a unique, specialized service, there is little-to-no competition in your area. Most likely, your franchise will be the first call when residential and commercial customers are searching for decorative concrete, paving stones, or edging. We offer a relatively low initial investment fee, intensive training, and ongoing support for a lifetime. We want you to be successful and earn a great living with our franchise.

Our team is passionate about what we do, and our doors are always open to our franchise owners. In addition, we offer protected territories, so you won't be fighting another competitive Border Magic franchise. The cost of the materials is low, including the equipment because we want to ensure anyone who is interested in owning a Border Magic franchise has that opportunity. We believe passionately in our services and want to share this passion with you. At the end of the day, you'll love being a Border Magic franchise owner.

To be a part of this unique franchise opportunity, contact Border Magic today!