cash advance business franchise
how easy is it to get a business loans?
i am 18 my grandad owns a business and he is looking to franchise a section of it i already work there and i know exactly how the business runs… i did business studies for an a level and i have done a pet management course.
i would need a loan to buy the inital franchise and then another up to £5000 for cash flow to enable me to pay myself and 1 maybe two other staff wages so only up to 3 staff maximum … also this £5000 would be for stock purchases and any renovations …
do you think £5000 is to high for a cash flow
also how easy would it be for me to obtain a inital business loan of £10-£15k…my grandad should help me with the rest of the money i need but it not i am looking for about £25k
i have a credit card that should have a good credit rating on as it is always paid in time ..
any help would be good
thanks in advance
A perceived obstacle that sometimes is mentioned from candidates I work with as a franchise consultant is this: “What is the best way to finance this franchise business venture?” This is a very legitimate question that needs to be addressed. A few, less-than-serious franchisee wannabes have absolutely zero clue of where they’ll get the money or even how much of an investment is involved. The vast majority, however, have at least some idea of how they will finance their business. They simply need some clear, concise information about what each option entails.
Here are 3 franchise financing possibilities and what they entail:
1. SBA (Small Business Association) Loan. This is a great place to check out because the SBA offers favorable terms and recognizes the importance of our nation’s small businesses. They provide competitive rates, no points, and no penalties for pre-payment. As a potential franchisee, you may qualify for an SBA loan, based on criteria such as number of employees, business size, and annual sales. Theirs is a simple and straightforward process as compared to other options.
2. Other Investors. This could be a viable way to go, especially if the franchise you’re buying comes with a very popular brand, as the likelihood of success increases substantially. Be sure that your proposal is detailed and includes your business plan and specific goals, along with your past accomplishments and achievements, via other business ventures or employment.
3. Family And Friends. Maybe you are especially close with a certain relative who is well-capitalized and would be willing to loan you the money for your franchise business. Or perhaps you have financially assisted a friend in the past and he or she has been waiting for an opportunity to return the favor. Be careful here, though. If you do choose this option, make sure that the agreement is in writing, and is clear and concise. It’s not worth losing a friend or a close relationship over money.
Whatever you choose, do your homework. Shop around. Consult with your accountant. Discover what programs are available that best fits your specific situation. As you can see, there are plenty of solid options to choose from.
Can your Business use a Cash Advance?