When it comes to buying a franchise, one of the biggest things to consider is how you will come up with the money. Sure there are generally financing options, but this will not be for the entire amount. This is why it is helpful to know some of the ways you can get the funding you need without having to go with a conventional loan for the pet store franchise you are looking for.
Use Your Savings
Sure this is often the first thing people think about when buying a pet store franchise, but it deserves to be said. You want to look at your mutual funds and any other liquid assets you may have so you can see where the best place to take from will be. You do not have to use all of this but rather you can use it in conjunction with other options on this list for your franchise funding needs.
Borrow from Your Retirement Account
One of the ways that you can come up with the money you need for the pet store franchise you want to buy is to borrow from your retirement account. This could be an IRA, a 401(k), or one of the many other options out there. You just want to make sure you look at the financial repercussions of borrowing against this to ensure that it will not cost you more in the long run than it is worth.
Home Equity Line of Credit
If you own a home and have a significant amount of equity built into the home, then this can be an excellent opportunity for you to get ahead. This is a great choice for your pet store franchise in many instances because the interest rates are generally low. They are generally much easier to obtain than a conventional loan.
Borrow From Friends and Family
Do you have support group that wants to see you succeed? If so, then you may want to talk with some of them about borrowing some of the funds to get your pet store franchise off the ground. A good rule of thumb with this is to set clear boundaries about how you will pay them back and what they expect to keep from having any issues with the loan in the future.
Lines of Credit
You should not forget to look into getting a line of credit. While this may not be important to paying the franchise fee, it is important for buying the things you need for your investment, which is part of the costs to open the business. You can talk with your banker or credit union to find out if they have lines of credit.
These are just a few of the ways you can get the money you need to open your pet store franchise. You want to make sure that you look at each opportunity so you can find what will work best for you and give you the funding you need.