Applicants of franchise loans usually apply for the loan to get into the franchise business for the first time or sometimes they are already in the franchise business but they want to expand their business to other new locations or new territory.
An applicant can get the franchise loan from SBA lenders or through some private lending companies. Usually, the franchise loan through SBA lenders Repayment is for 2 years to 25 years whereas the franchise loan through private lenders Repayment is from 2 years to 10 years. The documents required are An Application, 2 years Financial Statements of the Franchise Business, 6 months bank statements of the Franchise Business and a very good Credit Ratings of the applicant to be eligible to apply for the Franchise Business Loan.
LOANS INFO:
- Lending Rates: Rates start at 7%.
- Loan Term: length of loan ranging from 2 years to 10 years.
- Payment Type: Affordable monthly payments.
- Origination Fee: The fee is 1% to 3%.
- Credit Score: Credit ratings ranging from good to exceptional.