Get A Few Documents in Order Before Seeking Financing
Financing a new business can be a pretty stressful experience, but there are a few things you can do to make it smoother. Prior to meeting with a lender you should put together a personal financial statement and a copy of your last 2 years tax returns. Since these items are required to start the loan process it will show the lender that you are organized and ready to go forward. These items will also help you determine your net worth as well as the liquid capital you have available.
This process can also assist you in determining which franchise program you qualify for. In your search for a business one of the most heartbreaking things that can happen is to fall in love with a particular franchise concept only to find out that you don’t have enough liquid capital or a large enough net worth to acquire it. Searching for concepts on brandEXPANSION or First Prize Franchise will show you the liquid capital required for each concept.
Did you know that you can use your 401k or IRA account to open a franchise? You can do so without taking a hit on taxable income and it is not considered a loan or a distribution. You do pay a nominal flat fee when using it to start a business but it is very small in comparison to the taxes and penalties you would pay for taking a distribution. One of the reasons that I like this program is that you can continue to contribute funds to your retirement account down the road. Guidant Financial Group has a great program tailored for this very method if this is something that would work for your circumstances. A few of the other options for financing a new business include SBA Loans, Business Loans, Home Equity Loans, and Home Refinance Loans.
Starting a new business can be a very exciting journey, but make sure you do your homework. The decisions that you make today when acquiring a new business can have a big impact on your experience as a business owner. But you don’t have to go it alone. Just contact me and I can help you determine your net worth as well as find a great franchise opportunity that fits your needs. I’m confident that I can help you to find the business of you dreams!
