There is no denying that low cost pet franchises are a lucrative opportunity for most people. The one problem most people have though is coming up with the funding they need to get the loan. If you are trying to figure out how to fund your new business, here are a few options you may not have thought about.
Borrow From Your 401(k)
This can be a great way to get the funds you need when buying low cost pet franchises, though it is not for everyone. First, you will need to make sure that you can borrow from your 401(k) plan. There is a good chance you will be able to because approximately 87% of all 401(k) plans offer this feature. You will need to make sure you understand the regulations for your particular plans to know the amount you are able to borrow as well as any fees that may be associated with this. Keep in mind this is also only a good option if you have a decent amount saved in your 401(k).
Home Equity Loan
If you have a home and have ample equity built up, then you can always take out a home equity loan for low cost pet franchises. While you may think that you do not have much equity built into your home, keep in mind that the value of home nationwide has been on the rise for over a year now. Also keep in mind that you do not have to get an appraisal of your home if you want to get a general idea of your home’s value. You can simply look up comparable homes in your neighborhood that have sold. This will help you get an understanding of what the prices in your neighborhood are at right now. If you find that there is enough equity in your home, then start talking with lenders.
Unsecured Loans for Low Cost Pet Franchises
If you do not want to put your home, car or other property up as collateral for your business, then an unsecured loan may be the best option for you. Many owners of low cost pet franchises use this option because the approval for the loan is quick, generally within 24 and 48 hours. The one downside to this is that it does have a significantly higher APR than traditional business loans because there is no collateral on the loan. You may also need to provide extensive documentation compared to a traditional business loan.
These are just a few of the options you can use to fund low cost pet franchises. There are many other ways that you can get the money you need. Simply take the time to assess your financial position and what you have available to you. If you are not sure, then visit a financial adviser. They can help you find the options that are right for you.