How to Get Working Capital for Your Franchise

Being alarmed by the dramatic changes in the lending environment in recent months, many franchise owners have arrived at the realization that it's time to consider diversifying financing sources to find new ways to protect themselves from ever-changing and tightening credit policies.

Banks and other traditional funding sources that used to be “reliable” suddenly are anything but. Going back to your old friendly banker at the last minute may find the banker not that friendly anymore, and the franchise owner in a major cash crunch.

Why is financing in today’s economic times such an obstacle in the franchise development and expansion business? Because traditional lenders (banks and savings and loans) have historically based credit decisions on the strength of your collateral ("hard" assets), and many non-traditional lenders (non-bank lenders, insurance companies, leasing companies) who are often considered "cash flow lenders," have had their policies and access to capital to lend dramatically altered.

What's the best way to ensure your success in establishing and maintaining funding relationships that won't derail your development goals? By carefully selecting a lending source that has recently approved and closed working capital “loans” similar to what you are seeking.

Did you know that there is a new innovative proven way for franchise owners to get the working capital they need, not by pledging hard assets, but by pledging a portion of their future credit card sales in exchange for a lump sum cash advance today.

It’s called an Unsecured Business Line of Credit, of Credit Card Cash Advance. Hundreds of franchise owners from dozens of franchises have already taken advantage of this little known but highly effective way of getting working capital on a timely basis.

It works this way. We “purchase” a portion of your future credit card sales at a discount and give you a lump sum of cash today. The advance is repaid by taking a small % of each credit card sale until it’s repaid. Couldn’t be simpler.

There is no fee for application, no signing personally, no collateral required, no usage of funds specified and it doesn’t impact either your personal or business credit. Why, it’s not a loan, it’s a cash advance against future credit card billings.

In today’s economy, trying to get a traditional small business loan for your franchise can be overwhelming, frustrating and time consuming, often ending in failure- which is why alternative innovative sources of working capital should be considered. To insure that you get working capital when you need it without assuming that the old sources will always be available, you should consider all available sources like a credit card cash advance long before your need to cash becomes critical.