EXPERT ADVICE: George Knauf | Senior Franchise Business Advisor | FranChoice
Finance your Franchise Before Rates Rise
Okay, we are got to a point we all knew would come. The Fed is going to start raising the interest rates that companies and banks borrow at, which will flow down to SBA, Conventional and Home Equity loans.
The good news is that rates won’t jump too high all at once, so you have time to target franchises that fit your skills, likes, goals and how you want to work. There is time for you to do proper investigations of those companies to make sure all the pieces fit and that they have a good model, training and support.
If you plan to finance your franchise startup, the time to start taking action is now. Franchises are growing at a record pace.
The reason to kick it into gear is simple, the best use of your funds. Does it make more sense to spend more money monthly
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on marketing, staff and things that grow your business or would you rather be spending it on interest for your loan? Once you have identified a brand, or
brands, that look good to you then you
will want to give thought to your financial strategy. You could go directly to your
local bank and apply for a Small Business Administration (SBA) backed loan. They may approve you if all goes well.
