If you're seriously considering the idea of buying a franchise-type of business, there are several options when it comes to getting a small business loan. Getting a "free grant," isn't one of them.
Seriously.
There are hawkers hawking them, though....
These people spend a lot of money trying to convince those that want to go into business for themselves that there is "free money," available, and that it's easy to get.
There's a saying;
"If something sounds too good to be true, it probably is."
A question;
If "free money" was actually available to anyone that was interested in starting a business of their own, do you think that you'd probably be hearing a lot more about it?
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Cecelia Taylor, who write for the Small Business Administration's website-Business.gov, wrote this;
"The SBA and most other funding organizations across the nation do not provide grants or 'free money' for starting or developing a small business. Although there are certain types of grants available, these are generally specialized grants targeted towards specific groups, organizations, or activities."
That's from the SBA.
Or this Businessweek article, from 2000;
"Common sense and the most basic awareness of business principles should tell entrepreneurs that no one besides Mom and Dad (maybe) will give you no-strings money to start a for-profit business. 'If the government was in the position of providing all of the funds for free to people who start their own businesses, we wouldn't last long,' says Mike Stamler, a spokesman for the U.S. Small Business Administration in Washington, D.C. "Not to mention that the American people would never stand for the government setting individuals up in business at no cost, and all at taxpayer risk."
There are ways to get franchises funded; you just have to find them.
Like the SBA, for example. The US Small Business Administration doesn't loan money directly, however...they're the ones that back the loans that get approved at your local SBA-approved lender. They approve a certain percentage of the loan amount...in other words, if you default on your business loan, the SBA takes the hit for most of the loan amount, not the bank.
The SBA seems to be want to help smalll businesses get loans. They even have a new Direct area of their website that's supposed to help speed up the process.
Speaking of lenders, you don't have to work with a local one. Sometimes, franchisors have regional, or even national contacts in banking, and they can try to assist you in your search for funding.
One more question;
Do you know what a service-type of franchise business really is? Do you know why investing in a franchise that doesn't require building out an expensive retail location can be a wise thing to do?
To get those questions answered, go to our main website; you may be surprised at what you're able to learn....
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