8 Tricks to Get the Franchise Funding You Need
The most important aspect to opening your franchise is having the funding you need. You cannot get the business off the ground without the money to do so. This is why so many entrepreneurs seek lenders to help them with this. Whether you are looking for a small amount or the majority of the dog grooming business to be financed, it is helpful to know a few tricks to help ensure you get the financing you need for your pet care franchise.
Improve Your Credit Score
The better your credit score is, the better your chances are at receiving the loan you need for the pet care franchise. This means establishing a good history with lenders through making payments on time. You can always talk with a credit counselor to understand the best ways to improve your credit.
Have Good Credit References
Most lenders will call your credit references to ensure that you are a creditworthy individual. This is why you want to choose good people for this. You can go with friends, vendors, customers and much more. The idea is to choose people who will give you a glowing reference.
Fully Complete Your Credit Application
A mistake many people make is not filling out every line of the credit application. While you may think something is insignificant, the lender probably doesn’t. This could cause your application to be rejected. A good tip with this is to go over the entire document before you submit it to ensure that you have filled it out completely.
Either Choose LLC or C-Corp for Incorporation
Some people make the mistake of making their pet grooming business a sole proprietorship. While there may be some tax benefits to going this route, you will find that you are less likely to get the funding you want for your pet care franchise.
Take Care of Outstanding Debts
This could be lumped with building good credit but it is worth noting on its own. The less debt you already have, the more likely you are to receive the financing you need. This is why you should take the time to look at the debts you have and see what you can get rid of.
Tell Your Story
Whether you include this as part of the business plan or as a section on the application, you want to make sure you tell your story. Tell the lender why you chose this particular pet care franchise, what led you to the industry and what motivates you to keep going. If you know someone who has great writing skills you should ask them to help you write it or at least proofread it for you.
Have Projections Ready to Go
You want to be able to show the lender where you are going with your pet care franchise. This is why you need to create projections for your revenue over the next year, five years and ten years. This is usually part of the business plan most lenders require but it is worth noting on its own.
Contact Several Lenders
The best way to ensure you get the funding you need is to talk with multiple lenders. You want to get out your application with several companies. This will give you the best chance of finding the funding you need. More than this, you may even find that you have lenders competing for your business.