Funding Your Franchise
- MINIMUM $50,000 Liquid Capital
- MINIMUM $150,000 Net Worth
- FICO Credit Score Above 685
FINANCING OPTIONS
Making the leap from employee to entrepreneur is an exciting milestone—and for many, a lifelong dream. While securing funding may seem overwhelming at first, the right financial partner can make the process smooth and stress-free. There are multiple funding options available, and they can be used individually or combined to match your unique financial goals and situation.
ROBS PROGRAM (401K/IRA FUNDING)
This option allows you the benefit of accessing some or all of your pre-tax retirement savings to make an investment into your franchise, tax-deferred and penalty- free. Unlike a loan, the ROBS process will allow you to start your business debt-free with available cash. Using these funds may allow you to eliminate or reduce the need for additional small business loans. Alternatively, it is also a great source of funds to use as an equity injection for a loan, if borrowing is part of the overall funding strategy.
Additionally, with no application or approval process, there is no red tape when utilizing a ROBS strategy. Retirement funds can be ready for use and accessed within as little as 10 business days. And, if using this option, the value of your retirement plan will grow with the value of your business, rather than being dependent on market conditions.
SBA LOANS
Another strategy for funding your franchise is utilizing Small Business Administration (SBA) Loans. Under the SBA process, a portion of the loan is guaranteed by the Small Business Administration. SBA loans are granted through traditional banks and lending institutions and can be an excellent option for qualified candidates because the SBA incentivizes lenders to provide funding to new business owners.
HOME EQUITY LINE OF CREDIT
Home Equity Lines of Credit (HELOC) uses the equity you have in your home as collateral. You are able to draw off of the account when you need funds for your business. The interest rates are typically lower than with traditional lenders - and as your home increases in value, so will your credit line.
