Franchise Financing Solutions
Unsecured Loans / Business Credit Cards / Equipment Leasing / SBA 7A
We work on many franchise financing scenarios from start-ups to expansions. What product you qualify for will depend on your project. We can pinpoint which product or products may be the best fit for your franchise opportunity once we understand your scenario a little better. We may even combine other programs in order to achieve your funding and business goals. The products below are some of the ones we offer in our franchise loan program.
Unsecured Loans
Business Credit Cards
Equipment Leasing
SBA 7A
Unsecured Loans and Lines of Credit up to $450K!
Rates from 6.5% to 14.99%
Terms of 3 to 12 Years
100% Unsecured
Funds Can Be Used for Any Purpose
Turnaround Times Average 2-3 Weeks
Special Programs
Business Credit Card Client Requirements
Credit Score
Minimum 700 credit score in all 3 bureaus (680 for physicians and dentists)
Credit History
8-year minimum credit history
Utilization
Less than 30% utilization on reporting credit cards
Derogatory Marks
No major derogatory items on credit report (BKs, charge-offs, foreclosures)
Pay On Time
No (or very few) late payments
Equipment Leasing Program for Franchise Start-ups
Less than $25K – Lowest Documentation Required
- Minimum 675 credit score
- 3 months bank statements (show liquidity)
- Explanation of prior industry experience
$25K- $75K - Low Documentation
- Minimum 675 credit score
- Explanation of prior industry experience
- Verification of personal liquidity sufficient to cover meaningful down payment, 3 months of upfront business working capital needs, and up to 12 months of loan payments for your loan
Over $75K
- Minimum 675 credit score
- Explanation of prior industry experience
- 2 years of tax returns
- Personal financial statement
- Business plan
- Verification of personal liquidity sufficient to cover meaningful down payment, 3 months of upfront business working capital needs, and up to 12 months of loan payments for your loan
SBA 7A Loans for Franchise Start-Ups or Expansions
If you need to expand your business, or refinance debt, or both up to $350,000, then the SBA 7a Torch Program might be a great solution for your franchise(s).
5 Ways You Can Utilize Our Franchise Financing Program
1. New Unit Financing
Whether you’re a new franchisee looking to open your first unit, or an existing multi-unit operator looking to expand, we can provide the new unit financing you need. Our process is quick, simple, straightforward, and unlike most lenders, we do not require personal collateral.
2. Recapitalizations
If you’re an existing operator that funded your franchise with cash, we can lend you money against your existing business to replenish your cash or pay back family who may have helped, increase the return on your investments, or get capital to fund new units.
3. Refinancing
If you financed an existing location or locations with an SBA loan or traditional bank loan, we can refinance your debt to “get your house back”, free up collateral to open additional units, or consolidate your debt with one lender.
4. Remodels
Remodel requirements are unavoidable, with high costs that are often unplanned for. When it’s time to remodel, we help you avoid paying money out of pocket with no upfront costs and fixed monthly payments over the term of the loan. And, if your sales increase as a result of the remodel, there may be no cash impact on your business at all.
5. Existing Unit Purchases
If you are looking to acquire an existing franchise business, we can help. We can provide a loan commitment in a matter of days, which provides an important competitive advantage over other bidders. In addition, if you have existing locations we can lend against them to give you more cash in hand for your bid.
How to Qualify and Apply for Franchise Loans
Looking for funding to jump-start your franchise business? Business loans for franchises can provide the necessary capital you need to get your business off the ground. In this guide, we’ll cover all the basics of applying for a loan — including qualifications, pros and cons, and tips on how to maximize your chances of success.
Understand Your Qualifications
Before you apply for a franchise business loan, it’s important to understand your qualifications and needs. Many lenders have specific requirements for franchise businesses, so make sure you understand the qualifications that will be expected of you. For example, some lenders may require a certain amount of capital before giving out financing, or they may want to evaluate credit score history and collateral. Understanding your needs ahead of time will ensure that you provide all the necessary information during the application process.
Have A Business Plan In Place
Additionally, lenders may want to ensure that you have a valid business plan in place. This not only communicates your understanding of the franchise industry but also showcases your dedication and commitment to making the loan work. Furthermore, be prepared to provide necessary documentation such as financial statements, historical tax returns, and audited financial statements to demonstrate the success of the franchised business. Your goal should be to portray yourself as a reliable borrower with good character, as this will leave a favorable impression when negotiating financing terms with any potential lender.
How Much Will A Franchise Business Loan Cost Me?
Anticipate the costs that may be associated with the loan process. Most lenders will want an appraisal of the property, a legal review of paperwork, and other fees before providing you with financing – it’s important to account for these additional expenses when budgeting for a business loan. Depending on your financial situation, you can also consider alternative options like crowdfunding or pursuing grants from online resources and government programs. Ultimately, you want to choose the best financing option for your franchise business that gives you access to capital at terms you can afford.
Work With ICA To Expedite the Process & Get You Approved
Ivanhoe Capital Advisors will help you through the entire process. Getting the right qualifications and paperwork together so you can be on your way to getting the financing you need to properly fund your franchise project.
We do in-depth research beforehand and will provide you with the best path to success. You will have to create a business plan that demonstrates your commitment to your success. With these strategies in place, you’ll be better able to secure financing for your franchise business and utilize it to accomplish all of your goals.
Franchise Financing Success Stories
Funded a $2 Million New Golden Corral Development in Santa Maria, CA
Start-Up Loan Closed For A Rosati’s Pizza Franchise In North Carolina
Child-Care Franchise Purchase in Florida CLOSED
Some Of The Brands We Have Financed Through Our Franchise Program
- Giordano’s Pizza
- Burger King
- Jet’s Pizza
- Jimmy John’s
- Orange Theory Fitness
- Planet Fitness
- Pure Barre
- Marco’s Pizza
- Potbelly’s Subs
- Zoup
- Steak N Shake
- Dunkin Donuts
- Smoothie King
- Dogtopia
- Cycle Bar
- Golden Corral Buffet
- Sonic
- Taco Bell
- Wendy’s
- Sportclips
- Right At Home Healthcare
- Wing Stop
- UPS Store
- Fast Signs
- Culvers
- Tint World
- Jersey Mike’s
- Pizza Hut
- Jack In The Box
- Anytime Fitness
- KFC
- Carl’s Jr. Restaurants
- Merry Maids
- McAlister’s Deli
- Arby’s
- Exxon Gas Station
- Papa John’s Pizza
- Little Caesar’s Pizza
- Firehouse Subs
- Church’s Chicken
- Popeye’s Chicken
- Urban Air Adventure Park
- Honeybaked Hams
- Moe’s Southwest Grill
- Grease Monkey Franchising
- Sky Zone
- Rosati’s Pizza
- And Many More
Interesting Information About Franchises
The UPS Store
Planet Fitness
Great Clips
7-Eleven Inc.
Ace Hardware Corp.
Kumon Math & Reading Centers
Re/Max LLC
CPR-Cell Phone Repair
Hampton By Hilton
Merry Maids
Baby Boot Camp
Chem-Dry
Soccer Shots
Image One Facility Solutions
Proforma
Stratus Building Solutions
SuperGlass Windshield Repair
Mosquito Squad
Coverall
Chester’s
Denver
Madisons
San Francisco
Austin
Minneapolis
Columbus
Seattle
Nashville
Boston
Portland
Michigan
Virginia
Utah
Texas
North Carolina
Colorado
Ohio
California
Minnesota
Tennessee
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Chicago
Chicago, IL 60634
847-644-8085
Oak Brook
Oak Brook, IL 60523
847-644-8085
Monday – Friday
8AM – 4PM
info@icadvisors.com