How Existing Franchisees Can Get Emergency Financing
There are many types of emergencies, such as medical, personal and political. When they occur, quick solutions are needed. For the small business owner, a crisis is usually related to funding. For example, you may need to know how existing franchisees can get emergency financing.
When it comes to small business financing, franchisees may find that the deck is often stacked against you. Thankfully, there are ways that existing franchisees can get emergency financing. You just have to know where to look.
Can Banks Help Franchisees Get Emergency Financing
Traditional banks are usually willing to help a company with a proven track record of success. Therefore, partnering with a well-recognized franchiser works in your favor. Nevertheless, they are often reluctant to take a chance on individual franchisees.
Even if you have excellent credit, banks still require tons of collateral, at least 20 percent of the requested amount, before they will grant an instant business loan. The most you can hope for is a home equity line of credit, which means you have to put your residence at risk to get any money.
You may try getting a quick business loan backed by the Small Business Association. However, it can take months to be approved, which is no help during an emergency. Also, they typically have fluctuating interest rates. This could present a major problem for you if the rate goes up.
Where is the Best Place for Franchisees to Get Emergency Financing?
Today, many franchisees are turning to alternative lenders, like business cash advance companies, for assistance. If you already own a franchise and need cash for an emergency purchase or expense, Financing Solutions (www.financingsolutionsnow.com) can provide you with the funds to help you through that tough stretch.
At Financing Solutions, you can get same day business funding from a Better Business Bureau A+ rated company. They offer a fast, easy application process that you can start with just a 15 minute phone call.
Best of all, there is no long term commitment. With convenient repayment schedules, you can pay the money back in a few weeks or months and there are no early payment penalties.
Important Facts Every Franchisee Should Know
A lot of time and effort goes into becoming a franchisee. However, in the excitement of completing the process and owning your own business, many things can be forgotten or overlooked.
One aspect that has recently been a source of worry is the agreements between the franchiser and franchisee. The parent company may decide to exercise more control, which can weaken the independence of the franchisee.
You should also know that if things don’t work out, you could be left with very little equity. In some cases, the only items you actually own are the equipment you had to purchase. For instance, the franchiser could decide not to renew your lease at your current location, leaving you with nothing.
The most important fact franchisees should know is that it’s possible to get emergency business funding from Financing Solutions. They will help you deal with your cash flow issues so you can get back to growing your business.