FRANCHISE FINANCING

We assist franchisees in obtaining financing for their new business. For most franchisees this is the first time they have started or owned a business. Franchisers are limited in what they can do to assist franchisees with their Business Plan, especially the all important profit and loss plan.

Many otherwise qualified franchisees are unable to secure financing to start their franchise. Others obtain financing but it is not the best financing and this handicaps them in building their business and reduces their profitability. Examples of financing that may hinder current or future growth:

• Equipment Leasing - it initially looks good but the effective cost is very high.
• Home Equity Loan - the lender may change the terms e.g. no future advances, require monthly principal and interest payments, or require you to pay-off the entire loan.

We recommend obtaining a loan partially guaranteed by the U. S. Small Business Administration or SBA. Most start-up businesses qualify. Using an SBA loan has several advantages:

• Lower Cash Downpayment: The nationwide SBA Lenders we work with normally require 10% to 30% cash down payment, with most at 10% to 15%, from the owner(s).
• Longer Loan Repayment Term: Repayment varies with the type of loan and ranges from 5-years to up to 25-years for real estate. Most non-real estate is at 10-years.
• Lower Interest Rates: SBA guaranteed loans have their interest rate based on the New York Prime rate plus a margin of up to 2.75% - generally this interest rate is less than non-SBA loans.
• No Balloon Payments: All SBA guaranteed loans are fully repaid based on their term of 5, 7, 10, 20 or 25-years.
• Working Capital Included: Working capital (the difference between your businesses initial monthly sales and expenses) may be included as part of the loan.
• Loan Amounts: From $100,000 to $2 million.
• You Can Finance: Equipment, machinery, furniture, fixtures, inventory, building, leasehold improvements, business debt, first year's salary, and working capital.

HOW OUR GROUP HELP'S FRANCHISERS AND FRANCHISEES

A national SBA lender states the following:

    "Getting an SBA loan is relatively simple. The SBA mission is to loan you money and help you succeed. If you present them with a loan package that meets their very sensible business requirements, your loan will more than likely be approved.

     Outside of business fundamentals, nothing is more important than your loan packaging-how your loan request is prepared and presented to the SBA for its final approval. Technically, anyone can prepare and present an SBA loan package, just as anyone can represent himself or herself in a court of law. Success, however, is greatly influenced by the skills of your advocate."

Our Group has years of experience working with start-ups and franchisees. We help you cut through the red tape and help you create a Business Plan that gets financed. Working with our Group, you are given templates that describe your franchise business. Working with our templates you answer the critical questions that are unique to your location and your particular situation and we incorporate that information into your Business Plan.

Using the templates supplied by our Group you will be able to create your 3 Year Pro Forma Profit and Loss(c) Plans that are critical to securing your financing. We don't just supply you with templates - we help you by reviewing your revenue and expense projections and making suggestions to help you improve your profit and loss plan.

Our pro forma profit and loss templates go further. When your loan has been financed you can then take the revenue and expense categories from your 3 Year pro forma profit and loss plan and convert those to your accounting software's chart of accounts (e.g. QuickBooks, Peachtree, M.Y.O.B. are examples of accounting software for small businesses). You can import your monthly pro forma profit and loss amounts into your accounting software, and now when you create your actual monthly profit and loss statements you can compare your actual results to your plan and use that to improve your performance!

Your total cost for all of this is only $2,000 for the Business Plan and another $500 when your business is financed! Why so low? Because we help many similar businesses!

OUR PROCESS

• One: We do an initial qualification during our first telephone conversation as we answer some of your questions that relate to your personal situation.
  
  
• Two: We send you our Engagement Agreement, which is a contract describing our services and the price and our deliverables to you. We also send you an initial set of forms to be completed (SBA Personal Financial Statement, SBA Statement of Personal History, Investment Funds Required, and Personal Income and Expense Analysis), using these completed forms we can answer your questions and advise you on your finance options. If we determine that we will be unable to help you obtain financing we will return part of the initial deposit to you.
  
  
• Three: We will provide you with two templates that help you to create your Business Plan. The first template requires that you provide our Group with specific information regarding your location, competition, area demographics, and other general and specific information. We will also send you our 3 Year Pro Forma Profit & Loss(c) Plans templates; this template quickly gets you to focus on your sources of revenues, profit margins, sales and marketing expenses, and general and administrative expenses.
  
  
• Four: After you have approved your Business Plan's description of your business and your 3 Year Pro Forma Profit and Loss Plan, our Group will create your Business Plan adding in additional information requested by lenders to create a Business Plan/Loan Package
  
  
• Five: We present your Business Plan/Loan Package to one of the nationwide lender's we work with. The lender's loan officer will review your Business Plan/Loan Package using the lender's loan analysis profile. If your Business Plan/Loan Package meets the lender's profile, the loan officer issues to you a "Proposal Letter". A Proposal Letter broadly describes the terms and conditions under which the lender will consider making you a loan. Loan officers typically review and issue Proposal Letters 3 to 4 business days after getting your Business Plan/Loan Package.
  
  
• Six: If you accept the lender's Proposal Letter, you sign and return the Letter along with any deposit money stated in the Letter. The loan officer will now forward your Business Plan/Loan Package to the lender's loan underwriting department.
  
  
• Seven: We work with you to answer questions from our lenders. When a lender is satisfied with your Business Plan/Loan Package they will have their loan committee or underwriter issue to you a "Commitment Letter" detailing the terms and conditions under which the lender will make you a loan. You review the Commitment Letter with your advisors and if you accept the terms and conditions you create acceptance of the Letter by following the lenders instructions in the Letter.
  
  
• Eight: Once you have accepted the lenders commitment letter you will work directly with the lender to get all legal documents completed and signed. The lender will then begin making you loan advances to acquire the space and assets needed to open your business. Total elapsed time can be less than 60 days from our Group's receipt of our initial documents until you start getting money to acquire assets and space - when it takes longer the cause is usually the borrower failing to get documents to the lender in a timely manner!
  
  

Please click on the links below to obtain a pdf copy of our Initial Review Documents and or a copy of our General Terms To Obtain An SBA Loan.