October 26th, 2019
Funding your business is the first and most crucial decision business owners make. Opening a franchise can require a significant investment of capital that not everyone has access to. Cinch I.T. franchisees startup costs range from $100,025 and $124,850. If you are looking to finance your investment, you might look into several available options.
To purchase a franchise, you need to talk to your franchisor. There may be financing solutions through partnerships or direct capital from the corporation. This is one of the most common ways to finance a franchise. A benefit of franchisor financing includes the ability to possibly obtain other resources you may need to start your business. Nobody knows their business more than the franchisor, so any potential risks are identified better than other potential lenders. The agreements might have differed payments, so always review the terms with your attorney or accountant. This way, you can understand the terms before you sign.
Commercial Bank Loans
You may want to finance your franchise through a commercial bank loan. A bank or alternative lender offers a lump sum of cash up front, that must be repaid-with interest and monthly installments over time.
Once you apply for a commercial bank loan, the lender will review your credit history and further business plans. The lender will then determine if they think you’ll be able to repay the loan over time. They need to have a sense of trust based on your history and plans, which is reasonable. Once you are approved, you’ll be able to finance your franchise and pay the loan off with interest.
The Small Business Association provides loans that are funded by their intermediary lending partners. This is one of the most desirable options for franchisees. Cinch I.T. Franchises are approved on the SBA National Registry.
This follows a similar model to bank loans or alternative lenders. The SBA reduces the risk to lenders by guaranteeing a portion of the loan. This way, lenders are incentivized to offer more loans with lower interest rates. The duration of the repayment terms also increases. It’s a great incentive driven by the SBA.
If you have the necessary finances and credit to apply for an SBA loan, it’s a very desirable option. Always keep your options open though, because it’s a long process, and you don’t want to be stuck if you aren’t approved.
If you’re looking to finance your franchise quickly, consider applying through an alternative lender.
Alternative lenders offer several loan options that include equipment financing, business lines of credit, and term loans. However, alternative loans are often more expensive, have shorter repayment terms, and smaller loan amounts than others. This may be worth it if you can’t qualify for a bank or SBA loan, or if you need to finance quickly.
Own your Cinch I.T. Franchise today
If you are interested in owning your own Cinch I.T. Franchise, apply now. You can manage your business and build recurring revenue with our proven franchise model. Once the startup costs are approved, you can begin your training and become the best business owner possible!
More about Cinch I.T. Franchise
As the United States’ most comprehensive I.T. franchise, our mission is to help entrepreneurs start and grow their own Managed Services business. Our technology franchise was designed to help owners overcome the obstacles that hinder their growth. To learn more, visit https://cinchfranchise.com/
Marketing Associate, Cinch I.T.