Looking For Ways To Raise Money For Financing A Franchise?

Looking For Ways To Raise Money For Financing A Franchise?

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Many are times that you thumb through business opportunity magazines and noticed a franchise opportunity advertisement and you feel you want to get in on that, but only if you had the money. In fact, the problem is starting capital. If this is the case, you need to put together a very good proposal and present it to the right people. Here are ways to help you get that start up capital:

Borrow from friends and relatives

Once your proposal is assembled, it is easier to face your relatives and friends to help you in getting the start up capital. Most of them could be willing to give what they have without expecting anything in return. And you can also think of a limited partnership arrangement to finance your project. The loss liability will be limited to the amount each one of you invested initially.

Second mortgage

Although this needs you to make an informed decision especially on mortgage rates, repayment, taxes, down payment and the insurance amount, it is a worthwhile option. In fact, you owe it to go ahead if you are determined to succeed and are sure about the investment project. You want the lender to consider your home as the collateral for a loan that will act as your start up capital. You never know you could triple your net worth each and every year for the rest of your life. Arrange with friends and family how you are to repay off the loan.

Bank loan

This is another option that can help see to it that the business is actually running. All you need to do is to know the minimum requirements such as your credit history, source of income and the likes, to qualify for the loan. The trick is to research well on the project, plan for it, come up with a good proposal and go to reputable financiers; you will be amazed.