504 Loans Are a Good Choice for Franchise Financing
The 504 Loan Program is a good financing choice for franchises. Since the SBA has streamlined the approval process for franchisees, it is easier than ever to get the financing needed, especially when entrepreneurs open multiple franchises. The down payment needed for a commercial bank loan is often too high, usually 20% of the project cost, for most borrowers to accommodate. The capital outlay for franchisees typically includes franchise fees, royalties, marketing fees, and sometimes required products.
