Franchises combine the benefits of both big and small businesses. The marketing, purchasing, and system skills of a big business doing something over and over again are available to the entrepreneur, which is attractive. From the entrepreneur’s point of view, the business is run like they own it, because they do.
Loans for Franchise Investors
We provide loans for franchise investors in Pennsylvania, New Jersey, and Delaware. If you’re considering becoming a franchisee or if you’re ready to open a new location or even invest in another franchise altogether, let’s get the conversation started! Just fill out our One-Minute Application, CLICK HERE.
Over the years, TABASFUNDING has helped a variety of franchise investors with their businesses. We were involved with Saladworks, the franchisor (parent company), when they needed working capital to offer more services to their franchisees. We provided flexible funding, which was guaranteed by the principals. There was an interest-only period, followed by term repayment. During our time funding the company, they were able to expand from 20 locations to almost 100.
We also provided funding to several Dunkin Donuts franchisees. For top franchises, there is often inexpensive financing available once the location is up and running. We enabled our borrower to get started on construction while waiting for the slow moving bank-backed SBA loan to be approved and in place. Once that came through, we were repaid. Being nimble and able to move quickly is an advantage of TABASFUNDING. (Learn more on our Sample Funding page.)
Not all franchises are created equal, so choose your franchise carefully. The SBA publishes an annual list of franchises, and the percentage that fail. Not all of the franchises that we’ve backed have been successful. The same goes for any type of business.
Funding for Franchisees
Our loan making is not driven by collateral coverage. We will take what collateral is available, but that is a secondary consideration. What we look toward is the potential for cash flow. After all, cash flow is what repays loans, not collateral, as many bankers have learned during recessions.
In order for us to help, borrowers will need at least 20% of their required funds from their own resources, family or friends, in cash. From our point of view, borrowers need to be confident enough in what they are doing to stand behind it (guarantee). Franchise loans may be either term loans, paid over time, or interest-only loans, where the source of repayment might be another lender. Please call for additional information or fill out our easy One-Minute Application.
TABASFUNDING is your source for cash for growing and expanding your business in the Philadelphia area, New Jersey, and Delaware.