Where Will I Obtain Financing?
We have partnerships with lenders, such as LeaseProcess, to cover your capital equipment needs, including the financing of our new fully equipped Kwickshop™ trailer. This can help limit your upfront, out of pocket expenses. In addition, there are tax advantages to leasing that LeaseProcess will go over with you.
Bank loans are generally done on a local basis. Overall, franchisees have an easier time obtaining bank loans because of the established nature and experience of the franchisor. Often, there are lower default rates on loans for franchises. Lenders will expect the borrower to come up with 15% - 30% of the total capital needed.
Home equity loans and lines of credit are also a great source of start-up capital and carry very low interest rates. The line of credit is an especially useful tool because you only pay interest on those funds that you actually use.