Financing can be difficult with a franchise or really any business purchase. This is because it is very different from a home or car loan. There is generally more risk, which is why it is a little trickier. There are some tips you should know about financing your pet food franchise that can make the process much easier.
Get to Know the Banker
Having a relationship with the banker can make a huge difference. This does not mean that you have to take them out for drinks or invite them to a dinner party. Rather, you want to take a little time to talk with them and build rapport. They may have the final say on whether they will even consider a pet food franchise and having this built rapport can be just what you need. Getting to know them may even be enough to get theme to look at the franchise.
Ask if There is an Option for Expedited Approval
If you have never financed a franchise, then you may not realize that in some circumstances a franchise loan can take several months to go through. This is because the bank will want to look through all the financials of the pet food franchise to ensure that it is something they want to be involved in. Typically, to expedite the approval process, the bank will require a guarantee by the SBA. They have a list of approved franchises and if the franchise you are buying is on this list, then the process can run much smoother.
Don’t Stop Looking if You Get Rejected
Just because you tried and did not succeed with one banker doesn’t mean you should give up on your dreams of owning a pet food franchise. Remember that there are many other lenders out there. This just means that you have to keep searching for the one that will say yes. Find out why you got rejected so you can use this to help you find the right lender. It is also important to remember that there are many non conventional loan options that you can apply for as well. These may be easier for you get approved with. Also, if you find that this is related to your personal finances or even your credit, then work on improving these for several months and trying again. This can make all the difference in many cases. The main thing to remember is not to give up.