With economic uncertainty still surrounding small business owners, franchisees are finding challenges accessing capital needed for expansion.
While franchisees want to grow through additional units, the economic climate has made it difficult to execute on those opportunities. Yet with growth opportunities available, franchisees need to explore their financing options. For most franchisees, the first call is to their local banker. We are in a new world of lending requirements, with tighter credit rules limiting approvals, substantial documentation requirements, as well as personal guarantees and collateral requirements.
Moreover, fewer small business owners are able to tap into home equity or SBA loans. As a result, Merchant Cash and Capital’s franchise financing division provides franchisees of all sizes a lump sum to help finance expansion plans, in exchange for a share of future credit card sales, also referred to as a merchant cash advance. A merchant cash advance is a simpler and quicker way to finance franchise expansion, with funds often available within days. More.