Alternative Franchise Financing Can Close The Gap

Franchising World:

Nearly every franchisor or broker has a “one-that-got-away” tale about a would-be buyer whose financing landed just a few thousand dollars short of the capital necessary to close the deal.

Thanks to the current credit crisis, franchisors may soon have even more of these stories to tell. The ease with which borrowers once secured both home- equity and SBA loans has devolved into a protracted tug-of-war, and franchise sales are feeling the sting. In light of today’s lending constraints, however, some nearly- forgotten funding opportunities are being rediscovered and are coming to the rescue. Once covered by the dust of obscurity, these alternative funding methods are suddenly looking much more attractive. Some of these options may be familiar, while others are virtually unknown by sellers and buyers alike, yet they all offer the possibility for a vital injection of capital.

Here are some alternative franchise funding solutions that may make a few more dreams come true and close the gap between “the one that got away” and “open for business.”

Retirement Funds… read on.