Financing Options to Jumpstart Your Franchise Journey

franchising-opportunity

For those interested in the vomFASS franchising opportunity but are in need of additional financial assistance, there are a number of options available for prospective franchisees of all kinds geared towards crafting an affordable payment system to better finance your investment. Although vomFASS does not offer a franchisor-backed financing option, we are an SBA-certified franchise, which qualifies our prospective franchise partners for expedited processing if they choose to obtain a loan through an SBA lending institution.

Here are a number of other options we encourage prospective franchise partners to look into when considering what financing options are available to them:

Traditional Loan Financing

If you’re looking for a straightforward means of raising initial funding for your vomFASS franchise venture, looking to a local or regional bank for loan assistance is the starting point for many small business owners seeking financing opportunities. Although these larger institutions have tightened their approval restrictions in recent times, there are still a number of institutions granting these kinds of loans for those who demonstrate exceptional financial competence.

This option is particularly useful for those with outstanding credit history and a good deal of collateral to assure the bank you’ll be capable of adhering to the repayment plan. Additionally, this financing route may be best suited for those who have already established a wholly positive relationship with a particular bank in their area.

Combine Resources With A Partnership Approach

For those who are interested in looking elsewhere to find a financing solution, a partnership approach may be the answer. Specifically relevant to vomFASS’s co-ownership approach to franchising, partnership provides a way for associates to combine finances toward a common investment.

If you haven’t finalized a particular candidate for your franchise, use this as an opportunity to find an individual capable of meeting the needs of the franchising agreement requirements after carefully considering you and your associate’s ability to make a confident investment.

This option is particularly useful to those looking to begin the application process right away since a partnership funding plan allows you to meet the minimum standards necessary to qualify as a vomFASS franchise partner immediately.

For those having a particularly difficult time finding a more traditional form of financing, you can also look to your retirement funds as a potential pool of investment resources. By transforming your 401K or Traditional IRA retirement savings into capital, you can avoid incurring any debt or interest involved with acquiring a loan from a bank or other financial institution carrying borrowing conditions. This non-traditional form of equity funding is increasingly becoming popular particularly among franchise owners all across the country.

With a retirement account sustaining your business, the skills, talents, and abilities you have as a franchise owner can ultimately grow your account, creating a long-term personal savings opportunity. The ability to react quickly to investment opportunities without any imposed restrictions ultimately gives you more power to decide where your money goes.

Take Advantage Of SBA Loan Opportunities

If a traditional bank loan does not appear to be the best solution for you, an SBA loan may be the answer. The standard SBA loan given to franchisees is referred to specifically as the 7(a) option, which is issued by banks and other lenders qualified to offer these kinds of loans. These plans usually take up to six months to fully fund, and requires 30% cash down in non-borrowed funds. For those with a credit score of 680 or higher who are able to demonstrate a professional business plan as well as a means of repayment, this financing option may be one way to secure funding.

With a variety of financing options available, be sure you pursue the one that fits your needs the most. As with many kinds of loans, your credit rating is one of the most important factors when it comes to securing advances through banks and other lenders. Before making any significant financing decisions involving significant risk, be sure to check with financial professionals to ensure your investment is sound.

vomFASS USA maintains a strategic relationship with Dave Woggan, a Senior Funding Advisor who works one-on-one with each franchise partner to determine the financing method best suited for prospective partner.

If you have further questions regarding fees and costs associated with a vomFASS franchise opportunity, or would like to know more about our status as an SBA-certified franchise, contact us today.

Disclaimer: This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states in the United States regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your jurisdiction.