Hard Money Loans For Franchise Acquisitions
Owning a franchise is a great investment on the way to financial independence. After all, franchises give the independence of running your own business, while still having built-in support systems, such as training, branding, and a network of peers and corporate people to help when there is a problem with logistics. But many first-time business owners are opting to purchase existing franchises instead of starting from square one. That way, the customer base is already in place, and operations have already hit their stride. In order to finance franchise acquisitions, new entrepreneurs are using hard money loans.
What Are Hard Money Loans?
Hard money loans are a form of short-term financing designed to handle the immediate costs of property and franchise acquisitions while larger funding is still being processed. Hard money loans go toward closing costs, inventory, payroll, and any other expenses which need to be covered to ensure operations run smoothly during the transition in ownership.
Hard Money Loans Are Customizable
This form of financing is not arranged with the “one size fits all” approach of traditional lending institutions, such as banks. Instead, hard money financing can be customized to provide the adequate capital entrepreneurs need for franchise acquisitions without placing inordinate amounts of debt on the balance sheets.
There’s No Problems Paying Off The Loan Early
Hard money loans – unlike traditional bank loans – have zero prepayment penalties. Banks lock entrepreneurs into rigid payments schedules to earn as much money as possible from installments on interest. If business owners try to pay off a bank loan ahead of this schedule, prepayment penalties are triggered to make up the difference. Hard money financing, by contrast, does not have early payment penalties. Many new franchise owners even roll the cost of these short-term loans into the larger financing request and pay them off in one fell swoop when the long-term funds are disbursed. This makes franchise acquisitions easy and simplifies finances and budgeting much more than traditional loans.
Get Hard Money Financing Today
If you are looking to buy an existing franchise, and need short-term financing to cover immediate costs, contact Bayard Business Capital and Consulting at 314-312-4603. We will work with you to determine your financing needs, and provide the right solutions to help you reach your goals. Call us today and receive a no-obligation consultation to see how we can help you on the road to success.