This is one of the most common questions we get when someone is considering a franchise business. And this is a question we work with our clients on early in the process. We want to ensure they understand their investment options so we can find opportunities that not only suit their lifestyle, skill-set, work-load commitment, and financial goals, but also their budget.

Here are some of the most common ways our clients fund their new businesses. Keep in mind that it is not uncommon to combine more than one of these options.

• SBA Loans – Small Business Administration – Government guaranteed loans. The SBA loves franchise business because of the training and support the business owners receive.
• Securities-Backed Loans – These loans are collateralized by stocks, mutual funds, and other liquid assets.  Securities-Backed Loans are typically cheaper than SBA loans and allow individuals to use their liquid assets without selling them and creating a taxable action.
• Accessing Retirement Funds – There are specialized programs in place that may allow you to access your retirement funds to start a business WITHOUT taxation or early withdrawal penalties. These program also be utilized to help in tax planning for the ultimate exit from your new business.

We have partnered with Benetrends Financial to help our clients determine the best funding strategy. Please find some additional information available for download.