4 Sources of Funding for Veterans Buying Franchises
Are you a Veteran who wants to own your own business? Many entrepreneurs are former members of the armed forces. One of the best business purchasing solutions is to purchase a franchise. Marketing is easier, the formula for success has already been replicated, and the investment is often less than that of other businesses. The risk is lower as well.
Where will you get the money? Perhaps you were in the military long enough that you have some retirement income, and that can help support you and your family while you get your franchise up and running, but you’ll need to pay for the initial investment. That money can come from a number of sources.
Here are the top four sources of funding for Veterans considering buying franchises.
Veteran Launch is a company specifically in the business of loaning money to veterans who are purchasing franchises. They have competitive interest rates and issue loans up to $250,000 depending on your business needs. Loans can be used for a variety of purposes. Contact the company here for more information and to apply.
Often overlooked, sometimes the best place to get financing is from the franchisor themselves. Many companies have incentives and competitive loan plans to help new owners get started. Many offer no principal loans, balloon payment options and even equipment leasing. While many buyers seem timid to show the franchisor that they need to borrow money, the company selling the franchise should be at the top of the list for debt financing.
Conventional Banks and Credit Unions
Franchisees and veterans have an advantage when seeking financing from banks and credit unions. These institutions often have special programs for former service members and they like working with an established franchise rather than an unknown startup. The risks are lower. Your own bank or credit union should be near the top of your lender list.
Small Business Administration
If you need longer terms and a lower down payment, an SBA loan might be the right choice for you. These loans are available for franchises most of the time as long as certain criteria are met. If you have questions, contact the SBA themselves or talk with a business broker or other consultant. They can not only give you some financing advice, but they often have an inventory of franchises for sale that you can choose from.
Bonus: International Franchise Association
While not a funding source, the International Franchise Association has resources that are invaluable for anyone who is looking to purchase a franchise. Certain programs are targeted toward women, minorities, and veterans. Contact them for referrals to funding sources and lenders.
Are you a veteran interested in purchasing a franchise or do you have a franchise business for sale in Sacramento? Contact us here at Rogerson Business Services to learn what we can do for you, and how we can help you sell your business or purchase a franchise.