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papen · 10-31-2007, 03:02 PM

Hi everyone. Im looking for ways to get financing to start a coffee franchise that im interested in. Its around 100,000 to 150,000 to get started. I have no money in savings, or a 401k, im actually on disability right now. just was wondering if any business people out there know where i should start, as far as finding financing for this franchise? thanks, rich j<br />

bodyguard · 10-31-2007, 03:02 PM

I would not advice starting a $100,000-150,000 business without a single money in savings.

For one, banks will never lend you money. Even SBA will not lend you money. For banks and SBA to lend you money, you need to have money yourself as they require equity. If they want to see you put up 20% of the amount needed, then that's $20,000. They also need to see collateral, good personal credit history, etc.

Plus you will need operating expenses, employees, etc. Businesses, even franchises do not make money overnight -- you need to have capital to keep it running. Where will you get the money?

Also franchise owners typically do not accept applications from folks who cannot demonstrate that they have the required capital.

I suggest you either downscale your plans and start a business in the neighborhood of $1000 for example. Or wait for your financial condition to improve before embarking on the business. Or find someone who will be your partner and invest in the business

Marush · 10-31-2007, 03:02 PM

Try the company that you are trying to Franchise with. Often they have information or even finance themselves if they feel you are responsible, stable and have the ideal location for their franchise.

10-31-2007, 03:02 PM	#1
papen Greenhorn Join Date: Jul 2006 Posts: 21 Rep Power: 6	where can i get financing to start a franchise? Hi everyone. Im looking for ways to get financing to start a coffee franchise that im interested in. Its around 100,000 to 150,000 to get started. I have no money in savings, or a 401k, im actually on disability right now. just was wondering if any business people out there know where i should start, as far as finding financing for this franchise? thanks, rich j<br />

10-31-2007, 03:02 PM	#2
bodyguard Greenhorn Join Date: Jul 2006 Posts: 27 Rep Power: 6	where can i get financing to start a franchise? I would not advice starting a $100,000-150,000 business without a single money in savings. For one, banks will never lend you money. Even SBA will not lend you money. For banks and SBA to lend you money, you need to have money yourself as they require equity. If they want to see you put up 20% of the amount needed, then that's $20,000. They also need to see collateral, good personal credit history, etc. Plus you will need operating expenses, employees, etc. Businesses, even franchises do not make money overnight -- you need to have capital to keep it running. Where will you get the money? Also franchise owners typically do not accept applications from folks who cannot demonstrate that they have the required capital. I suggest you either downscale your plans and start a business in the neighborhood of $1000 for example. Or wait for your financial condition to improve before embarking on the business. Or find someone who will be your partner and invest in the business

10-31-2007, 03:02 PM	#3
Marush Greenhorn Join Date: Jul 2006 Posts: 22 Rep Power: 6	where can i get financing to start a franchise? Try the company that you are trying to Franchise with. Often they have information or even finance themselves if they feel you are responsible, stable and have the ideal location for their franchise.

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