How to Raise Money for Any Franchise? (2)

Read the first part of How to Raise Money for Any Franchise 2 at How to Raise Money for Any Franchise 1.


You could incorporate yourself, borrow money from your family through a second mortgage on your home, and protect against the loss of your home through the Federal Home stead Act. The important point here is that all business opportunities involve risk and sacrifice. It's up to you to determine the feasibility of your success with your proposed venture, then decide on the best way possible to proceed.

In every instance where you run into reluctance on the part of a lender to lend you the money you need, explore the feasibilities of "two-name" or "co-signed" loans. You can have the franchisor sign with you, or one of your suppliers, a business associate or even a friend.

Oftentimes you can borrow or rent collateral such as stocks, bonds, time certificates, business equipment or real estate, and in this way give greater confidence to the lender in your abilities to repay the loan.

Whenever you can show a contract from someone who has agreed to purchase a certain number of your products or services over a specified period of time, you have another important piece of paper that most lenders will accept as collateral.

Still another possibility might be to get a bank or a firm that has loaned you money in the past to guarantee your loan. They simply guarantee that they'll lend you money in the future if ever the need should arise.

Going straight to you neighborhood bank, applying for a business loan and walking out with the money is just about the most unlikely of all your possibilities. Banks want to lend money, and they must lend money in order to stay in business, but most banks are notoriously conservative and extremely reluctant to lend you money unless you have a "regular income" that "guarantees" repayment.

If and when you approach a bank for a business loan, you'll need all your papers in order - your financial statement, your business plan, credit history and all the endorsements you can get relative to your succeeding with your planned enterprise.

In addition, it would be a good idea to take along your accountant just to assure the banker that your plan is verifiable. In the end, you'll find that it all boils down to whether or not the bank officer studying your application is sold on you as a good credit risk.

Thus you must impress the banker - not only with your proposal, but with your appearance and personality as well. In dealing with bankers, never show an attitude of doubt or apology.

Always be positive and sure of yourself. However, don't come on so strong to them that you're either demanding or overbearing. Just look good, know your stuff, and project an attitude of determination to succeed.

Your best bet, in attempting to get a business loan from a bank, is to deal with commercial banks. These are the banks that specialize in investment loans for going businesses, real estate construction, and even venture programs.

Look in the yellow pages of your telephone or business directories; call and ask for an appointment with the manager; and then explore with him the possibilities of a loan for your project.

One of the "nice things" about commercial banks is that even though they may not be able to approve a loan for your business ideas, they will almost always give you a list of names of business people who might be interested in looking over your proposal for investment purposes.

A lot of commercial banks stage investment lectures and seminars for the general public. If you find one that does, attend. You'll meet a lot of local business people, some of whom may be able to and interested in helping you with your business plans.

When you're looking for money to move on a business deal, it does not really matter where the money comes from, or how it all comes about. It's important that you get the money, and at terms that are suitable to you.

Thus, don't overlook the possibilities of an advertisement for a lender or investor in your local papers. Place your ad as well in national publications reaching people looking for investments.

Other avenues to seriously consider are foundations that offer grants, local dental and medical investment groups, legal investment groups, business associations, trust companies and other groups or organizations looking for tax shelters.

Basically, it isn't a good idea to go to a finance company or other commercial lender of this type for a business loan. The most obvious reason is the high interest rates you have to pay.

These companies borrow money from larger money lenders, and then turn around and lend it to you at a higher interest rate than they pay. Herein lies the means by which they make money from granting loans to you.

The more it costs them to provide the money for you, the more it's going to cost you to borrow their money. The only element in your favor when borrowing from one of these agencies is that most will generally lend you money against collateral other lenders just won't accept.

Insurance companies, pension funds, and commercial paper houses are not too out of sight with their interest rates, but they generally will not even consider talking to you unless you're requesting $500,000 or more. They'll also pretty much require that your business proposal be backed by the best possible plan.

Finally, the bottom line is this: You must have a well-researched and detailed business plan; you must have all your documents and projections put together in an impressive presentation; and then, you will have to be the one who does the final selling of your proposal to the investor or lender.

This means your appearance, personality and attitude, because - make no mistake about it - before anyone lends you any size able amount of money, they're going to want to take a close look at you personally before they hand over the money.

Actually, the different ways of financing a franchise opportunity are as many and varied as your own creativity. The sources of obtaining money are virtually limitless, and available to anyone with an idea.

One word of caution before you jump into any franchise purchase agreement: The price you pay to participate in a franchise operation is not always the total cost involved in getting the business off the ground.

With some franchise operations, you may find other costs such as down payments on the purchase of property, building construction costs, remodeling or site improvements, equipment, fixtures, signs, advertising, and training.

Virtually all franchise deals require that in addition to the purchase price or the license fee of the franchise, you're required to give a certain percentage of your gross business income to the franchisor, plus extra payments for promotion and administrative costs.

Above all else, before you get involved in a franchise, or any business venture for that matter, make sure you've conducted a complete and thorough investigation of the opportunity presented. If it's a good deal, then go with it; but if you have any doubts or feel as though you're getting in over your head, back off and look around for something not quite so ambitious, or perhaps expensive.

There are a lot of good franchise opportunities, and some not so good. It's important that you be sure of what you're investing in, and that you can make money with it.

From there, preparing the proper business plan and the necessary financing, while not always a snap, can be done. Now's the time to do it! We wish you outstanding success with your franchise business.

* Continue How to Raise Money for Any Franchise 2 at Questions to Answer Before You Buy A Franchise. Read all the finical entries at the Ezine Act's Forums and the Ezine Acts Business Financing, site map (16).

* Get the complete business financing articles with complete financial insights at:

Advance Paycheck| Auto Loans| Auto Tune Up Shop| Business Financing| Business Financing Service| Cash Advance| Credit and Debt Counseling Service| Debt Consolidation| Free Forex Signals| How to Earn Money from Monitoring Stocks?| How to Get Money Fast?| Instant Cash| Money Making Mechanisms| Payday Loans|

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Share Your Opinions and Build Your Own Page Here!.

"Like" and "Tweet" to express your love!



Did you find this page useful?

Yes
No

You'll Not Believe What You Get When You Subscribe to the BLOG.

That will change your life.

Ezine Acts has Many Offers!

Choose What Interests You Most!

Visit Art.com

Visit Art.com

On the Internet for Nothing?

Don't let yourself be left behind! I will reveal to you how could you use your knowledge, any kind of knowledge, or  hobbies, or personal experiences to change your life. ASK ME this: "how to use my experience, hobby, passion, or knowledge to improve my life online?"

Selected Poetry by Khalid Osman

Rising of the Phoenix in Arabic.

Want to work with me to translate it into English, French, Italian, or Spanish?

Use the form at Multicultural Project to contact me.

Rising of the Phoenix, poetry book, by journalist and poet Khalid Osman
Rising of the Phoenix, selected poetry book, second edition, by journalist and poet Khalid Osman
Love in the Internet Time, stories, by journalist and short story writer, Khalid Osman
The Political Tragedy of the Horn of Africa, political analyses through history, by journalist and researcher, Khalid Osman

Get some advices about love compatibility at the following links:

Bright Letters| Bright Letters and Polite Touches| Liking Starts Here| Love| Love and Romance| Love and Sex| Love Letters| Love Problem| Love Problem SolutionPolite Touches| Roommate Finding Services| Sex|

Even Animals Love Each Other!

See how do elephants kiss and enjoy the humor.  

Easy Explore the Ezine Acts'

... to find what interest you. We believe that things interest you could change your life, only if you thought of those things wisely.

Best Recommendations - You could make your life better here, through the following useful resources. Keep reading to discover the hidden power of your passion at Choose It| CTPM| e-Learning CollegeSuccess Stories|

Follow home-biz-trends.com, hoa-politicalscene.com and my daughter's 100-beautiful-sites-in-the-world.com and TVCinemaApp.com and share them on Twitter, Pinterest and other social media services.

SBI!

More Values?

You can read this website through your Yahoo account, Bing account, Google account, or any other account you see on the following buttons.

Click on your favorite and then sign in to your account to get the updates.

[?]Subscribe to this Site
  • XML RSS
  • follow us in feedly
  • Add to My Yahoo!

SEARCH POINTER