Franchise Loan Consultant

Getting the information you need could mean the difference between your small business sinking or swimming. A good SBA (Small Business Administration) franchise loan consultant will be able to tell you everything you need to know to obtain the financing you need for construction, real estate, and working capital.

Whether you are looking to expand your already established business, or hoping to purchase a franchise or bizopp and start from scratch, a franchise loan consultant should be able to give you information about the loan that is right for you.

Ordinarily, if a commercial lending institution-such as a bank-likes your business proposal but sees that you do not have the personal resources to provide collateral on the loan, they will recommend that the SBA provide a guaranty on the loan. This is especially the case if your franchise business plan is sound, and you have or will have the adequate cash flow for repayment, but you appear to be too high risk for the bank to make the loan with no kind of insurance against a default.

Once the bank has recommended you for an SBA loan, the next step is setting up your franchise business plan and personal information for the SBA's review process. A good SBA Loan Consultant should tell you all you need to know about the SBA's eligibility requirements. These requirements include business size, management experience, business acumen, personal capital, and other factors depending on the individual case.

The SBA can provide guaranties on loans of up to $2,000,000 ($4,000,000 in some specific situations). Generally, the SBA guarantees 75% of whatever the loan amount is.

In many ways, for the lender and borrower this is a win-win situation. The borrower get access to money that would ordinarily be out of reach, and the lender gets the security of government protection against a default.

Going to your local commercial lending institution is the first step towards getting a franchise loan consultant. The lending officer that you work with may prove to be the person that provides you with the information you need.

Make sure that the lending officer you see has a good record when it comes to closing SBA loans. If the lender tried to send you away, or won't give you the information you need about which SBA loan is right for you, then it may be time to shop around for a new bank, although working with the bank that you have a history with is generally the best option.

Getting funds is the hardest part of running a small business franchise. With an SBA loan guaranty, access to those funds can be much easier. And always remember the old adage: "it's the first million that's the hardest to make."