If you’re a franchisee, you know the importance of crossing all your “T’s” and dotting all your “I’s”. Details are important. That’s even true when it comes to selecting the right lender to handle your financing. Whether it’s for a remodel, a new store acquisition, or to purchase some new equipment, perhaps the most important detail of the financing process is selecting a lender with franchise experience.
Here are the top three reasons why:
They understand you. It seems obvious, right? A lender that has worked with someone in your shoes knows where you’re coming from. Franchisees have unique challenges and business models that may not fit any other kind of business. If they’re working with other franchisees in your specific concept, they’ll understand the unique franchisee/franchisor relationship and already be familiar with the mandates your franchisor might be rolling out.
You’ll have access to special programs. If your concept has a history with the particular lender you are dealing with, chances are they will be more willing to work with you to create special programs around your specific needs. Many lenders will build a custom program to suit the multi-unit franchisee as well as the single unit operator to support you over time as your open, acquire, and remodel your location.
You’ll get better rates. If the lender has experience working with other franchisees in your brand, you’re already a part of an established reputation. They’ll know that your concept is a safe investment, and this could translate into savings for you. You’ll probably get your money faster, too.
So, when it comes to franchise financing don’t go to just any old lender on the block. Be sure to do your homework and find a lender that has franchise experience. It’ll pay off in the long run.
Want to make the search really easy? Direct Capital has tons of franchise lending experience. Be sure to check us out if you’re in need of some finance help.