Franchise Loan Financing Overview
Business acquisition loans are term loans to finance costs associated with acquiring a franchise business.
Loan Purpose
- Purchase Price
- Equipment
- Furniture and Fixtures
- Tenant Leasehold Improvements
- General Purpose Working Capital
Loan Amounts
- $250,000 – $5,000,000
Rates
- 7.75% – 10.25% (Variable or Fixed)
Collateral
- Cash
- Marketable Securities
- Equipment
- Furniture and Fixtures
- Tenant Leasehold Improvements
- UCC Filing
Repayment Terms
- Monthly Principal & Interest Through Maturity
- 2 – 10 Year Amortization Periods
- 10% Minimum Down Payment (Often More)
The most common method of funding business acquisition loans is through the Small Business Administration (SBA) 7(a) program.