Using Fitness Franchise Financing for Entrepreneurs
Career trends are changing as more people strike out on their own to start a business and become franchise entrepreneurs. Owning a franchise allows up-and-coming business owners the chance to eventually expand and become successful in their chosen fields. If you are ready to start your own fitness business and need fitness franchise financing, there are several ways to secure the funds you need without putting yourself into debt.
Because you are just starting out in the entrepreneurial game, you may want look into loans that are sponsored by the Small Business Association. A portion of these loans are guaranteed by the SBA, which makes lenders more confident about lending to inexperienced businesspeople. While the SBA does not loan money to entrepreneurs directly, it does work with a number of banks to back up small business loans. These loans usually mature after five or six years and are paid back from the profits generated by the franchise. Before you seek fitness franchise financing, look into which banks in your area offer SBA loans.
When it comes to choosing a fitness franchise, you may want to consider one that has a familiar brand name and a history of success. While small franchises can be successful, first-time franchise owners should come to the table with a name everyone can recognize. If possible, choose a business that has many locations all over the country (or even the world) to make your business plan look more attractive to lenders.
As a new entrepreneur, it is important to remember that having good credit will not instantly allow you to get the financing you need. While clean credit is a factor lenders look into, they also take others into account, such as how much you will be investing into the business. Most lenders recommend that you should be able to offer at least twenty percent of the funding you need to increase your chances of securing the rest from the bank. Before you visit the bank, consider what kind of collateral you can offer or whether your family and friends would be willing to invest in your business. The more money you put up front, the less of a lending risk you will typically be.
While securing fitness franchise financing can be challenge for you as a new entrepreneur, careful planning and a thorough understanding of the lending process may increase your chances of success. The more prepared you are to talk about your business plan, the more confident you will appear in the eyes of lenders.