Construction Loans: Short Term Options For Franchise Owners
Franchises offer incredible earning potential to business owners, but – depending on the franchise – operations my require build outs as per the franchisor’s specifications, or building a structure from scratch in the shortest amount of time possible, in order to start making sales. In these situations, short term construction loans are the preferred funding option for franchise owners.
A Few Words About Bank Loans
There was a time before the economy took a downturn in 2008, when most businesses in need of financing would take out bank loans. After the crash (and its slow recovery) banks became very wary of lending money, and have since employed very restrictive requirements to access funding of any kind. Fewer than 20% of all business loans applications see approval, and only then after sufficient background and credit checks, and a sufficient history of healthy financials. Because of this, very few new businesses can meet the requirements, and those that do have to wait on red tape and internal processes to see funding This becomes most obvious in the time it takes for a loan application to process, and then for the funds to be disbursed.
Alternative Short Term Construction Loans For Franchise Owners
Fortunately, commercial finance companies have a much better understanding of the needs of small business owners and emerging entrepreneurs, and specialize in providing fast closing times and competitive rates so new franchise owners can finish their construction projects and start bringing in customers. Commercial finance companies can provide short term construction loans for build outs, ground-up construction, and renovations. Commercial financiers can provide the funds necessary from their own vast sources for hiring construction teams, simply leasing the necessary equipment for do-it-yourself projects, or larger financing for construction contracts.
Commercial finance companies also offer SBA Loans programs for new franchise owners. The trick is to find an SBA Preferred Lender that can fast track loan applications to get new franchises the funding they need for construction projects. SBA Loan programs can cover most construction, and even property acquisition and development.
If you are a new franchise owner in need of short term construction loans, or you would like to explore other franchise-focused financing options, call the CousnelPro Lending at 1-888-292-3322. We serve new and emerging business owners across the country get their dream operations launched, and we develop long-term relationships with our clients to help their businesses through every stage of development.