How Franchise Financing Works
Franchise financing is a smart and fast way for small- to medium-sized businesses to obtain the working capital they need for growth and expansion. Franchise Financing USA offers businesses an up-front sum of capital in exchange for a share of future sales. It is not a loan, so therefore does not require any collateral or personal guarantees. Although requirements differ depending on the lender, the most important thing is that the business accepts credit cards as a form of payment from their customers. Restaurants, retailers and service companies make up the majority of the franchise financing customer demographic.
How much Financing do I qualify for?
Franchise financing is an extremely flexible program. It allows merchants to decide what amount they want to borrow and choose a holdback percentage with which to repay the franchise financing.
Franchise financing offers businesses up to 150% of their average monthly credit card sales. For example, a merchant processing $10,000 a month in Visa/MasterCard sales will qualify for up to $15,000. (150% x $10,000 = $15,000) The amount advanced plus an agreed-upon fee on top is paid back through a fixed percentage from future credit card sales. This is called a holdback percentage. Once a merchant receives the funds, the holdback percentage is turned on and the credit card sales start going toward repaying the advance.
Testimonial
"Franchise Financing USA provided me with the cash to expand my location and add more space. Now I can seat twice as many patrons, and my sales have shot through the roof! They make it so easy for me to access capital without the hassle or requirements of going to my bank for a loan. "
Robert, Franchise Owner