Ways to Finance your Children’s Orchard Franchise
Small Business Administration (SBA) Loan:
SBA 7(a) loans are small-business loans that are federally guaranteed by the SBA and issued by banks. SBA loans are without a doubt a popular choice for funding a franchise. The SBA can guarantee up to 85% of loans of $150,000 or less and 75% of loans of more than $150,000. For the issuing bank, this is very attractive because the bank only guarantees a small portion of the entire loan. To further streamline the lending process, Children’s Orchard is a preapproved franchise with the SBA.
If you would like to learn more about SBA loans or obtain a prequalification for your new Children’s Orchard franchise, select one of the lending resources below. This is a very short but popular list that will get you started in your quest for financing your Children’s Orchard franchise.
Apple Pie Capital
This is a very popular way to fund your new Children’s Orchard franchise. Instead of taking out a traditional loan for your business, you can utilize the money in your 401(k) to fund your new Children’s Orchard business WITHOUT triggering any early withdrawal penalties or taxable distributions. This is accomplished by first establishing a C Corporation, and then you buy private stock shares of that new C Corporation (aka your new Children’s Orchard franchise store) from your 401k funds. These funds then become available to start up your Children’s Orchard store debt free!
Benetrends is a popular company that specializes in this type of funding. If you are interested in learning more about this type of self-financing or to prequalify with Benetrends, simple click the link below to learn more and become preapproved.
Alternative Franchise Lending:
The first type of financing most franchise business seekers turn to is traditional financing from large national banks. Little do they know that many alternative financing opportunities exist and can help them secure the money they need faster and with less hassle. These alternative lending institutions have a wide portfolio of products for franchise seekers that typically do not meet all the requirements larger, more stringent, national banks require. These firms have many creative programs to secure the franchise lending you need. In many cases, this also include SBA loans.
If you are interested in learning more about alternative financing programs or to become preapproved, please select from the one of the lenders below.
Alliance Funding Group
Capital Leasing Solutions
Home Equity Loan / Cash Out Refinance:
Tapping into your home equity or performing a cash out refinance of your property is becoming more of a possibility for many franchise seekers as housing values across the country continue to increase in value. This funding source is a way to collateralize the value of your home in order to start your very own Children’s Orchard franchise business. This model is also a way to secure a more stable interest rate than traditional business financing.
Leasing is a great option for reducing the cash-down requirement amounts for start-up costs and the down payment amount needed for additional funding of the business. Leasing give you the option to lease up to $50,000 for your fixtures, technology and signs. This lease payment simply becomes a monthly payment termed out over 60 months.
If you would like to learn more about leasing options or to get preapproved contact the lender below.
Diamond Financial – Franchise Leasing Divison
Capital Leasing Solutions
Portfolio loans allow individuals to borrow up to 80% of the value of their stock, bond and mutual funds. Unlike traditional loans, this type of credit is brokered out as an interest-only payment. These types of loans are collateralized by your portfolio, so you cannot withdraw the funds or fall below the 80 percent loan-to-value ratio in the account. Contact your financial advisor for more details.
Unsecured loans are typically referred to as “signature loans”. This type of lending is extended to a borrower based on their credit history and requires no collateralization. To qualify for these types of loans, a borrower typically needs a very high credit score, no derogatory credit history, and is using a fractional percentage of current credit accounts such as credit cards and other lines of credit.
Friends and Family:
This common source of business financing allow friends and family to make a monetary investment in your business, typically for an equity position or a fixed rate of return. These individuals know you are reliable and competent and see the opportunity to make money investing in you and a Children’s Orchard franchise.
All cash funding is an option. This is very straight forward and self-explanatory. The ability to fund your franchise with all cash is a funding option for those investors with larger amounts of capital to deploy.
Watch this video to learn details about NTY’s recommended financing option through Wells Fargo from our VP of Franchising: