Franchise Financing

Franchising offers a unique opportunity to own and operate a business in a solvent, well-run organization with proven marketing and operating skills. In order to finance your franchise, you may need access to private or public debt financing options.

Some of the most popular types of debt financing for franchisors include: corporate lending (borrowing by an entity such as a corporation), senior secured loans (backed by assets such as real estate or equipment), venture capital rounds (for high-growth businesses), and asset-based lending (provided that sufficient collateral is available). It is important to consult with experienced professionals who can help you assess which type of loan will work best for your specific situation.

Stat Loan Services has access to franchise financing options. To learn more complete our 15-second online application and speak with a business financing advisor today.

There are a number of different lending sources that you can use to finance your franchise business. The most common source of financing is a loan from a bank or credit union. Other lenders that may be interested in your franchise include private investors, real estate companies, and venture capitalists.

Once you have chosen the lender(s) that you want to work with, it's important to submit an application and complete all the necessary paperwork. Once this has been completed, the lender will evaluate your proposal and decide whether or not they would like to provide you with a loan.

Learn more about different sources of financing that are available to a franchise by completing our 15-second online application. 

Typically, the minimum investment required for a franchisor to provide funding is 10% of the total system cost (excluding real estate). This includes items like rent or lease payments, initial inventory costs, advertising expenses, etc. Once you have been approved for franchise financing by the franchisor(s), you will need to complete an application form and submit detailed financial information. Your prospective franchisees may also require documentation related to your business concept and management team.

Once all these requirements are met and reviewed by the franchising company(s), you will be contacted to arrange a meeting at which time they can discuss your specific franchise opportunity in more detail. 

Find out if your franchise qualifies for franchise financing by completing our 15-second online application today.