Buying a franchise is a highly popular way for individuals to get into business. Yet, as the old saying goes, “It takes money to make money,” and securing financing to buy a franchise can be difficult.

Virtually every good thing in life comes with challenges and roadblocks. Financing to buy a franchise may be one of those. But, that need not be an impediment to proceed to achieve your dream. There are some good ways to proceed.

How to Get Financing to Buy a Franchise

Here are some popular franchise financing options:

Financing provided by the franchisor. Some franchisors offer financing solutions via partnerships with specific lenders or by providing capital from the corporation itself. Notwithstanding the “one-stop-shop” ease of this funding, it is still essential to understand the payment terms.
Traditional commercial loans. Traditional term loans available through banks or credit unions are frequently the first thought-of source of funding for a franchise. Using this approach, the stronger your credit score and financial history are, the better the terms and interest rate will be for a loan.
SBA loans. This is one of the most desirable options to finance a franchise because the interest rates are lower along with longer repayment periods versus other financing options. SBA loans are funded by intermediary partners, including banks and credit unions, with the backing of the Small Business Administration.
Alternative lenders. Alternative lenders typically have less stringent requirements and shorter turnarounds, compared to traditional sources, yet the convenience may be more costly.
Friends and Family. This is a common way to seek funds, but it may come with some relationship challenges.

Seek Expert Financing Assistance

Contact the financial experts at Commercial Capital Finance, known for having diverse and flexible commercial finance services for new businesses and existing enterprises.  Our financial professionals can help you secure appropriate funding to meet your business’s financial needs.