Franchise Maven November 11 Newsletter
Gregory K Mohr
I help ambitious entrepreneurs and investors find a thriving franchise fit or flip their current business into one.
Hello, friends and franchise mavens.?
As always please let me know what you would like to read about in my newsletter!
Shoutout DFW
Do you have a business that you want to turn into a franchise or would just like information on what that would mean to you???We do that and help you grow the franchise as well.?Ready to sell that franchise system??We do that as well.
Get started here:
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Top resales this week:
St Louis MO
Commercial Cleaning Corporate Location
10 clients, 23 Employees
Revenue: $480K
Asking: $395K
Would you like more information???
Resale list:
Real Freedom?
Why Franchises Are Worth Considering and How They Can Be Used To Build Wealth
Chapter 5:
Financing Options
Let’s take a look at the various funding options available…
Small Business Administration Loans (SBA)
Another way is with Small Business Administration loans.?The information I outline here is always subject to change. Now with SBA loans, you can go a few different routes:
领英推荐
You can do what they call an Express Loan, which has the benefits of a traditional SBA loan, without the personal collateral requirements. You get access to about $150,000 or less, depending on what you need. The Express Loan, you're not using your personal collateral. You just put 10 percent down into your business checking account. The SBA then dumps the $150,000, or whatever you need, into that account.
When talking about the services industries, this is a perfect option—very simple, very easy to do. However, it’s not an option if you're going to do a brick-and-mortar. That's more of a build-out. You're going to be looking at more of an SBA 7(a) loan, which will be a little more in-depth. That one you can do up to $5 million with about 20 percent to 30 percent down, depending on what you're doing. They pay out the money over time. As you build up, then the SBA pays out the money over time to you as you go through the building process and as you're needing it. With SBA loans like that, you'll likely need a credit score of 680 to 690 and generally takes anywhere from two to four months to get that done.
Term loans have very good interest rates, which a number of lenders provide, but it's going to come down to your good credit. Our funding partners like franchises. Franchises generally have a good track record of success. Of course, if a franchise you're looking at does not have a good track record of success, then you probably shouldn't be looking at it anyway and you may not be able to get a loan for it.
You can also go the portfolio loan route. It takes about two to three weeks, and you can do up to about 80 percent of your account balance for portfolio loans. You're looking at having a minimum security deposit of about $85,000. Stock trading should be at about $5 per share or more. No minimum credit score required on a portfolio loan.
Unsecured and Blended Loans
There's also the unsecured loans which are a little bit different. What is an unsecured loan? An unsecured loan is a credit card. Yes, you can actually do a loan through credit cards. Now there are good and bad ways of using credit cards and you have to be really careful with the credit card you get. My lenders will find you credit cards that give you the 0 percent APR, for a dollar limit or amount of time. You have to make certain that if you're using those, that you can pay those off in a certain amount of time so that you're not stuck with the interest rate on a credit card on that one.
Other loans that you can get are from working capital loans; although, you've got to execute the franchise agreement first then you can get a working capital loan. Again, 680 to 690 credit score, 10 percent down, no collateral is what you need, but it is pretty fast funding of about 30 days, or so.
You can also do equipment leasing. With equipment leasing, you're generally looking at about $10,000. Equipment leasing takes a bit higher credit score in the 700 range. They also want you in business for a couple of years which is a little bit challenging. If you're in business for like zero to two years, you’ll need the higher credit score, but if you're in business a little while longer, credit score goes down to about 650.
Check out my book on how I have helped people just like you find the right franchise
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Commercial Cleaning is always needed, rain or shine, good times and bad.
Ownership Options
Owners can choose to be an Owner-Operator who works in the business and is responsible for daily operations or a Semi-Absentee Owner who would hire a General Manager and take a step back after launch to focus on the business.
Acquiring (and Keeping) Clients
One big reason our Owners find success is our focus on helping them find and keep clients. We do this through our niche market strategy and our strong?sales support.
Click here for more information and to find out if it is available in your area:??
Employee Retention Tax Credit
We will take care of your paperwork and have lending facilities in place, if you qualify, to get you YOUR MONEY within a matter of days.
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Contact me today for more information on anything franchising.
-Greg