Why Payroll Financing is a Good Idea for Franchise Financing
Starting a business is hard, which is one reason why franchising is so popular. When you have a great, well-working business model, it might prove profitable to expand by sharing it, and payroll financing is a good idea for franchise financing.
There are several options for expanding your small business. You might choose to open multiple locations or increase your product offerings. Franchising is another choice, but you must get all the facts before making this decision, including how you will obtain financing. Payroll Financing could be the ideal solution.
How Payroll Financing Can Help Franchise Financing
You might believe that payroll financing is only for businesses having difficulty making payroll, but this is a misconception. Immediate business funding from payroll financing can be used for any business expense, including building a working capital fund, expansion or equipment purchases, and franchise financing.
Beginning a franchise will cost at least 25,000 dollars to start, for items like attorney fees and development of an operations manual. The price will climb higher, maybe up to 250,000 dollars, if you wish to expand rapidly.
Since you already have a sound business model, franchise financing might be easier to get than a traditional small business loan. However, banks still require mountains of paperwork and tons of collateral, which is time and money that may be better spent on other things.
What you need for quick business financing is a cash advance company, like Financing Solutions (www.fundmypayroll.com). They can give you the franchise financing you need in less than 48 hours.
Also, if you have a low credit score, but have a successful business, banks could still turn you away, but Financing Solutions won’t. They will consider other factors, such as your current payment history, to decide on your approval. In fact, approximately 90 percent of businesses that apply for instant business funding from Financing Solutions are approved.
Best of all, there are no penalties for early repayment. Most businesses are able to repay the money in a few weeks or months. This is short-term business financing you can count on.
The Benefits of Franchises
Although you are a busy, successful entrepreneur, you have probably not developed the ability to be in multiple places at one time. Therefore, if you want to expand by opening new locations, you have to find top managers and other talent to run it.
Finding motivated, dedicated people might be easier if you are hiring future business owners instead of just employees. When people have a real stake in the success of a business, they tend to work harder, making it a win-win for everyone.
In addition, franchising allows you to earn royalties while someone else pays most of the upfront costs and does all the work. There is also less risk and fewer limitations on how much you can expand.
The Disadvantages of Franchising
Perhaps the biggest downside to franchising is the potential loss of control. If you hire employees or store managers, they have to listen to you or be fired. A franchisee is essentially a business owner, who may have his own ideas or not like yours. Even with a business model to follow, there might still be plenty of wiggle room that could cause you to butt heads.
Just like any other big decision, the pros and cons of franchising must be heavily considered before coming to a conclusion. If you do elect this option, come to Financing Solutions for franchise financing.