Business Credit Lines For New Franchises

Franchises are a great business model for new and emerging entrepreneurs. But all new businesses, even franchises, need working capital, and bank loans are not always a viable option. Banks are not ready to lend money new franchises, because entrepreneurs do not always have the high business credit ratings or financials. By the same token, not many new franchises are keen on placing more debt on the balance sheets, so alternative sources of working capital are always welcome. Fortunately, business credit lines offer sources of working capital for new franchises, and there are a number of methods to get access to business credit without taking on debt.

Asset Based Business Credit Lines

Business credit lines based on the property owned by new franchises is a very progressive solution, in more ways than one. First, this line of credit is structured around what a new franchise already owns. In most cases, these assets include real estate, equipment, inventory, and receivables. The value of these assets is used to create a revolving line of business credit without taking on debt, or relying on external constructs for business funding. Second, these lines of business credit will grow as new franchises increase sales, acquire new property and equipment, and start carrying more inventory.

Unsecured Business Credit For New Franchises

New franchises which have been operating for fewer than two years can get access to unsecured business credit lines. The special financing programs are weigh the profitability of new franchises more than current credit ratings and other factors. Obviously, more profitable franchises will get access to higher spending limits than others, but getting unsecured business credit lines is now a possibility for new businesses in need of working capital, without needing to resign themselves to debt-based funding programs offered by banks and other traditional lending institutions.

Get Started Today

If you own a new franchise, and need access to business credit, call the CounselPro Lending financial team at 1-888-292-3322. We specialize in offering business credit and other financing solutions to new and small businesses, without placing debt on the balance sheets. Our professionals will work with you on a one-on-one basis to understand your needs and goals, in order to provide sustainable funding strategies to help your franchise grow and flourish.


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