Franchise Financing: Why You Need It
There are many franchises available for entrepreneurs, from chains that require a sizable amount of liquid capital to others that have minimal investments. The truth is that no matter how much your net worth is, you should always apply for franchise financing. Why?
The Benefits of Franchise Financing
Starting a franchise requires many different things. New franchisees can take advantage of financing to give their location the best start possible. Here are some of the essentials prior to opening day:
- Real estate
- Operating costs
With franchise financing, you can obtain a loan that covers all of these needs in a single, easy-to-manage monthly payment. This simplifies accounting and helps you ensure smooth cash flow, especially during the first months of business.
The Importance of Safeguarding Your Working Capital
Some longtime business owners may feel tempted to pay for many of these items using money from savings. While it may seem that this is an option for saving money, it’s not one we recommend. Using up all of your savings during the pre-launch phases can leave you strapped for cash when you need it most. By applying for franchise financing, you stay flexible and ready for anything. If you do run into an emergency, you have the savings you need to avoid high interest rates.
If you’re not sure how much financing is just right for your franchise, contact our financial experts right away. Applying is easy.