ForumsFinancing Tips

I was planning on starting this month or next, we already started the application.
we need to take a test and so on.

Atlanta, GA

Andy,

Do you know why B of A turned you down? What type of loan did you apply for? They should offer SBA loans, so I am not sure what happened there. Maybe you were working with someone who was inexperienced.

Anyway, back to the questions. How far along are you with Subway? Have you signed a franchise agreement and paid your fee? I am not intimately familiar with Subway, but if you are a first time owner, I would suggest speaking to other Subway owners before taking the financial plunge. I have heard some things...

No, franchisors do not offer financing. Long story short, franchisors are highly regulated. Although you would think they should provide financing if they are so certain they're concept is so great, financing franchisees would open up all kinds of liability issues.

An SBA guaranteed loan is the most common option for financing a franchise. I also work with a lender who offers financing to tier 1 (the large) franchises and some very successful smaller franchise concepts. For those who qualify is it a great way to go because the lender does not collateralize the borrower's home. Also the application process is quick and easy.

There is another option that I offer. It is a version of the unsecured business line of credit. We set up a new corporation for you and do all the work to secure the most business credit possible, up to $150K. Even people with low credit can get this credit.

Paula
619-884-5402

Thanks guys for all the details.

Bank of Amerrica turn us down because the financial specialist was not very experience, she said there was no sba loans available, but their website clearly state it does. So we spoke to a manager and she told us she would filed it, however, we should finish the process with subway and get approve.

Then there'll be a greater chance of us getting the loan. I will be speaking with subway owners just to get their opinions on what is good or what could be bad.

Usually, through sba loans, do they ask for deposit or collateral?

I thought hyland was talking about franchisee financing where their rates are higher.
I was reading through some threads and sba loans, people were depositting like 10% .

I might put my car for collateral and deposit 10%, hopefully thats enough.

Lets say I have the real state as collateral and my net worth qualifies me for the franchise.
What happens to that collateral? What if I failed, whats going to happen to it?

Sorry, I just want to get a lot of information before I devour myself into something that's going to invest a lot of my time and assets.

Okay. Calling you now.