This article is written and owned by Lance Winslow
Most franchise buyers have heard by now that the credit markets have dried up, and that means getting a loan for a small business or to buy a franchise business opportunity is a lot harder than it has ever been in the past. Additionally, many franchisees have used home equity loans to help pay for the down payment or buy the franchise outright. So, today in this market many are wondering if it is even possible to secure their American Dream under such dire circumstances and in this recessionary economic climate.
Well, before giving up, I think you ought to consider a few things. First, many franchisors have policies that allow new franchisees to pay half the franchise fee now and half in payments starting after the first six months. Many franchisors also have initial graduated royalty payments until your franchised outlet starts turning a profit, thus, allowing you to make your working capital last longer in the beginning.
Many vendors have third-party leases for equipment, which you can take advantage of. And perhaps you didn’t realize this but the SBA or Small Business Administration has indeed modified their loan guarantees. It used to be 80%, now it is 90%, meaning the bank is no longer taking a huge risk if it makes you the loan.
And franchisors are often able to assist you by giving you information to help you create the 13-page business plan forms that are needed to secure those types of loans. Please think about this, it may not be as impossible as you think to buy into a franchise right now!
Lance Winslow – Lance Winslow’s Bio. Lance Winslow is also Founder of the Car Wash Guys, a cool little Franchise Company; http://www.carwashguys.com/history/founder.html/.
Article Source: http://EzineArticles.com/?expert=Lance_Winslow
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Franchise opportunities are here…
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