Do I need collateral or a personal guarantee?

Most franchise loans do require a personal guarantee from the business owner – this is standard, meaning you agree to repay the loan personally if the business can’t. Collateral requirements vary: SBA loans often will collateralize available assets (home equity, etc.), but lack of collateral isn’t always a deal-breaker for SBA if other factors are strong. Equipment financing uses the equipment as collateral. Some working capital loans might be unsecured (no specific collateral) but could have higher interest rates or shorter terms. We will clarify what’s needed for your chosen loan and help you understand your obligations before you commit.

What are the basic qualifications to get a franchise loan?

Qualifications can vary by loan program, but generally lenders consider: Credit Score: A solid personal credit score (often 680 or higher for SBA loans) helps, though we have some options for lower scores depending on circumstances. Down Payment / Equity: For new franchise startups, you may need to invest some of your own capital (often 10-20% of the total project cost for an SBA loan). Some loans, however, offer 100% financing if you qualify. Collateral: This depends on the loan. SBA loans may require collateral (like a lien on your house or business assets), while equipment loans use the equipment itself as collateral. We also have unsecured working capital options that don’t require specific collateral. Business Plan: Lenders want to see a solid business plan or projections, especially if you’re starting a new franchise. If it’s an existing franchise purchase, they’ll look at the franchise’s financial history. Franchise Brand Approval: If you’re buying into a franchise, the franchisor usually needs to approve you as a franchisee and often they must be listed on the SBA Franchise Directory for SBA loans. We’ll help ensure all those boxes are checked. Don’t be intimidated by requirements – our team will walk you through each item and help present your qualifications in the best light. If there are any hurdles, we’ll advise on how to address them or explore alternative financing that fits your situation.

How fast is the approval and funding process?

We pride ourselves on faster approvals than you’ll typically find elsewhere. Initial pre-approvals can often be obtained within 48-72 hours after we receive your complete application. Final loan approval and closing can vary depending on the loan type – for example, an SBA loan might take a few weeks to complete due to government requirements, whereas a conventional loan or equipment financing could close in a matter of days. Rest assured, our team will give you a realistic timeline upfront and will expedite every step we control. We know timing is critical, and we aim to get you funded as quickly as possible .

Do you finance existing franchisees who want to expand or buy additional units?

Yes, that’s one of our specialties. Whether you want to open a second (or tenth) location, purchase an existing franchise unit, or remodel your current store, we have loan programs for you. Expansion loans or acquisition loans can be structured based on the profitability of your current operations and the projected returns of the new unit. We understand the multi-unit growth strategy and can often arrange financing that leverages the success of your existing franchises. Many of our repeat clients are growing franchisees who come back to us as they expand their portfolio.

I’m new to franchising. Can I get a loan to start my first franchise?

Absolutely. We work with many first-time franchise owners. Lenders will typically look at your financial background (credit score, net worth, etc.) and the strength of your franchise brand and business plan. Thanks to our experience, we help newcomers prepare strong loan applications. Programs like SBA loans are designed to help new entrepreneurs launch businesses, and we’ll guide you in meeting the requirements. You do not need prior business ownership experience – franchising often provides training and a proven model, which lenders recognize. If you’re excited about a franchise opportunity, we’re here to help you secure the funding to get it off the ground.

What types of franchise loans do you offer?

We offer all major franchise financing options, including SBA 7(a) loans, SBA 504 loans, conventional term loans, equipment financing, working capital loans, expansion loans, and refinancing . Essentially, if it’s a loan a franchisee might need, we can likely provide it. Visit our Loan Programs page for details on each option.