So, you want to bring a Code Wiz location to your community but don’t know how to finance your project. No worries! Check out the following suggestions on how you can finance your business and franchising dreams!
Bank Loans and SBA Loans
If you are considering a bank loan to fund your business, it’s a good idea to look into the Small Business Administration or SBA. This organization exists to support small businesses in many ways including setting guidelines for loans and reducing risk. SBA backed loans make it easier for small businesses to get the funding they need.
Also, did you know that it is easier to get a business loan before your business launches than after? The reason is that once you begin operations, banks will want to see your financial reports, profits and losses. As most small businesses take some time to break even, you can imagine it being a challenge to be approved based on actual profits. In comparison, when you apply before business launch, banks consider your financial projections and business plan.
Home Equity Loans
Do you own your home? You might want to consider a Home Equity Loan in that case. The loan amount is based on the difference between your home’s current market value and the balance you have left on your mortgage. The benefit of this type of loan is that the repayment terms are generally longer and the interest rates are much lower compared to other types of consumer debt.
Did you know it is possible to roll over your 401K into your business as an investment? This process is called “Rollover as Business Startup” aka ROBS. Instead of giving your 401k to investment bankers to invest on your behalf, you can take that money and invest it in your own business. This is a viable alternative for aspiring entrepreneurs who want to avoid debt or collateralizing their home.
Last but not least, you can seek out financing in the form of partnership. If you have people you know and trust who have the financial ability to invest in your business, you can put together a pitch and offer them a stake in your business in exchange for capital. Many great businesses have thrived through partnership!
Want to get started?
Are you excited to finally realize your full business potential and franchise with Code Wiz? Great! We are here to help you every step of the way! Book a call today!