Get a UBLOC-unsecured business line of credit. UBLOCs have become popular, especially for lenders who need less than $100,000, an amount for which a traditional SBA loan is difficult to obtain. You have to have a credit rating around 700 to qualify for a UBLOC, though a track record of past business success may get you in with a lower score. Rates are higher than with an SBA loan but UBLOC approval is usually quicker--a day or two versus weeks for a traditional loan Microloans. If you need less than $35,000 in funding, many lenders won't want to help. But you can seek a microloan from lenders ranging from the SBA to nonprofits such as Accion USA or Kiva. It is easier to qualify for the mini-SBA than a traditional loan. Rates tend to be competitive, and a microloan can give you some operating cash while you build up your credit to qualify for a larger loan.
Your landlord or your vendor. Anxious landlords may be generous with lease terms or even pay for needed store buildouts to make a deal happen.
Liquidate your assets. Do you have a boat, a vacation cabin, fine art, a life insurance policy
with equity, or other valuable assets? Consider skipping the arduous loan process and resulting interest costs and sell your assets for cash.
"Sluggish bank lending has thrown a wrench into many franchisors' growth plans. To help franchisees move forward, many have created financial assistance programs to help open new units. Many franchisors have stepped up their financing assistance to help new franchisees get started despite the tight lending market," said Rich Walinsky.
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About Franchise Traders
Franchise Traders, Inc. is a licensed affiliate of The Franchise Alliance, Inc., the leading network of franchise specialists in the United States. Franchise Traders draws on over 25 years of franchise experience provided by The Franchise Alliance. Licensed affiliates in both the United States and Canada continually bring new franchise opportunities to the awareness of The Franchise Alliance, helping Franchise Traders identify the best franchise opportunities.