mortagesandforeclosures

by Hunter Fisher

People who are contemplating to start a franchise business often start by looking at track records of existing ones to gauge which have been around for a while and are thus believed to be operationally sustainable. Although this is a key step in choosing a franchise business, it should not be the first one.

In today's economic climate, it's more important to get your financial strategy down first before looking through available franchises. If you're not sure about how to get funding for such a venture, the following options may be helpful.

Patriot Express Program

The Patriot Express is a lending program administered by the Small Business Administration or SBA. The program is geared towards:

- Military personnel on the verge of retirement

- Veterans

- Members of the National Guard

- Military spouses

Borrowers may take out loans of up to $500,000 under this program. The SBA doesn't offer this loan itself, but instead guarantees 75-85% of it for other lenders. This means banks and moneylenders carry much less risk when giving out such loans, which in turn means it's relatively easier to get the loan. In addition, the credit score requirement is not very high.

Interest rates under this program are also quite low. For loans that take seven years or less to pay, the maximum interest rate is 2.25%. For longer-term loans, the highest rate is only 2.75%.

Qualifying for this loan means meeting certain criteria for eligibility, which include the following:

- The size of the business

- How the money will be used

- Type of business

- Alternate funding sources

The VetFran Initiative

The VetFran, or Veterans Transition Franchise Initiative, helps military veterans through the initiative of the International Franchise Association (IFA). The IFA has over 350 partners among the country's franchise corporations. While the VetFran program doesn't give out loans, its partners help veterans find suitable lending programs and business franchises to invest in. Franchising is a great way for veterans to earn income and stay busy.

Franchise Funding Specialists

These specialists primarily help you come up with the best financing strategy for your franchise business. All they need is some information about yourself and your plans, and they do the rest.

Consulting franchise funding specialists is advantageous because they are well-versed in the ins and outs of franchising. They have a wide network with which they have cultivated relationships so your applications will go along much more quickly and smoothly.

Depending on your situation, these specialists will draw up a list of available lending options for you as well as come up with the actual figures that you have to work with. Franchise funding specialists usually don't charge a fee for their services until after you have received your loan. This is another feature that works in your favor as you get actual help without shelling out cash first.

About the Author:

If you have ever taken out any PPI it may have been mis-sold and you could be entitled to claim it back. Real Claims specialises in PPI claims and can help you claim your money back. Alternatively if you face financial troubles Wilson Field offer free Debt Advice.

Get all the information and photos:: http://mortgagewide.info/accessing-loans-for-franchise-businesses/