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By Benetrends • April 29, 2015

How to Secure SBA Financing for a Franchise Faster and Easier

Ask any franchise or small business owner who has applied for an SBA loan and you'll likely hear similar stories. The paperwork is overwhelming; it took way too long; they were denied at one or more banks and finally gave up. it goes on and on. That's where a proprietary SBA financing program can help. This type of program eliminates the fear and anxiety of SBA lending, and helps franchise candidates obtain funding faster and easier.

So what exactly is a proprietary SBA lending program? A funding partner works with a franchise brand to set up a fund, providing a block of money to franchisee candidates who meet or exceed specific credit box criteria. Since the funding partner, partner bank, and franchise brand have already undergone a thorough process and have detailed knowledge on the brand, the approval process is much faster. With the normal practice of a candidate going to their local bank or lender,  he or she needs to educate a loan officer who is not familiar with a specific franchise brand for a loan. And because its a proprietary program, the franchisees application goes right to the top.

Additional benefits of this type of program could also include:

  • Simplified qualification process
  • Dedicated loan officer from application to closing
  • Loan proposals within two business days of receiving initial application
  • Loan commitments within 10 business days of receiving loan package
  • Access to experienced PLP SBA lenders

This program can be a huge advantage for franchise candidates since you now have direct access to capital that can be used in any number of ways. Examples are opening your first franchise location, opening your next of many franchise locations, or upgrading an existing location.

Some of the brands who participate in this type of program are Sport Clips, Hand & Stone, McAlister's Deli, World of Beer, FASTSIGNS, and more. If you're pursuing franchise ownership, and are interested in getting an SBA loan, ask to see if the brands you're interested in participate in a proprietary lending program. Or, find out more about Benetrends' proprietary franchise financing program by contacting us at 866-423-6387.