It's Time to Franchise Now
After examining all your business options you have finally decided to buy a franchise. How are you going to raise money to secure your territory?
Most banks and lending institutions require you to have a decent credit record and a percentage of the buying price in cash. However, if you have security in the form of shares, property or such like then some banks will be willing and able to fund a hundred percent of the purchase price.
The advantage of using your property as security is that it is possible to get a loan over a much longer term thereby reducing your monthly repayments.
A private placement memorandum offering is the only way individuals achieve your funding without stress. Profran Consultants can show you how to do this easily.
If you have a poor credit history or are unable to provide security then it is still possible to raise funds if you can persuade a wealthy individual to be your guarantor.
They can usually offer longer repayment terms and more favourable interest rates to people that fulfill their lending criteria.
Banks do not just look at how much money you are willing to commit and how much security you have to offer. They are also interested in the type of person you are and how committed you are likely to be in the business once they have given you their money.
If they believe that you have the ability to run a business, look presentable and you have taken the time to create a decent business plan; this will help you to secure the most favourable loan from the right lender.
With the credit crunch it is now harder than ever to get a low interest rate loan but with a well prepared business plan and some cash or security, it is still possible to get the right funding solution that is ideal for your requirements.
We recommend that you speak with a Profran Consultants representative to learn about "The Best Kept Secret In Business Funding" a private placement offering. Whether it's $100,000 or $10,000,000 or more, a private placement offering could be your answer. What is a Reg D Offering?
This rule is considered by many as the perfect answer for the company just starting out that needs to raise less than $1 million but can't k1108868afford to go through the whole SEC registration process.
* An exemption to raise up to $1 million
* Few general solicitation and resale restrictions
* No limit as to the number or type of investors
Actually, Congress's original intent in 1982 for Rule 504 was to "set aside a clear and workable exemption for small issuers to be regulated by state blue sky requirements, but by the same token, to be subjected to federal anti-fraud provisions and civil liability provisions." Rule 504 exemption is provided for almost any type of organization, including corporations, partnerships, trusts, or other entities. However, it is not applicable to companies already reporting to the SEC (subject to the '34 Act) or investment companies.
