Forums: Discussions for entrepreneurs and small business.

Hello Everyone,

I am looking to start a Day Care buy purchasing a Franchise.  The monies needed is 42k as Franchise Fee and then another 100k to 300k  in on hand Capital which would be about 10% of the amount needed for a loan to either use an existing space or if space will have to be built from scratch.

I do not have 150k on hand and I certainly do not have 350k.  Are there ways to borrow money for such a venture?

Thanks,

Kyra

Hi Kyra:

From your post, your main concern appears to be how to fund the day care center you envision. Although you may want to try the banks, you may have to go through the ringer with them given the times and the economy. However, you may want to consider obtaining an unsecured small business loan. This type of loan is collateral-free, and it's interest and loan payments will depend on your credit history. Simply put, the better your history, the better rate you will get. Loans can start from 10K up to 500K, depending on your plan and purpose.

This is also an ideal way to build up your credit history with your business as you grow and expand going forward. This allows you to try and get bigger loans from the large banks or financial institutions should your capital needs be more than 500K.

You can contact unsecuredcreditsource@gmail.com if you feel this type of financing may be appropriate for you.

Thank you for your time and attention.

Kind Regards,

Rudy

Hey Rudy,

You must have Gates or Buffet as backers in that they're willing and can afford delinquencies, etc.. I mean, give me a break - a $500,000 unsecured loan? Even with a 720+ FICO, no collateral.

Besides, how legit can you be by suggesting contacting a gmail account. One question thought - do you know April Shelby? LOL

There are all types of business loans and each type of loan has their own requirments.

You may want to check out (businessmoneytoday.com) - there you can search for all types of business loans based on your needs. They also explain what each is and how to apply.

Most loans will require a portion of equity from you as well as great credit.  Might look into SBA guaranteed loans.

You might also see if your local government has any resources for you - start by asking at your chanber of commerce.

Good Luck! 

Well a business loan is the only way as venture capitalists wont fund franchisees I feel. If you are confident in the business, go for a business loan.

Kyra,

Most "good" franchisors have some type of financing help available -for those that qualify. Generally, if one can't qualify for the financing - the company won't sell them the franchise - so see what information you can get form the company who is selling the franchise.

If it is an existing franchise that is being "resold" - your ability to arrange financing (and the terms) will largely depend on the performance of the business plus your personal financial situation.

Either way, it's going to be difficult to secure financing if you don't have some capital to put into the deal. To get "your" portion of the capital, you may want to consider some type of securities sale.

If you want to discuss the specifics of your situation (in confidence) feel free to send me a PM or contact me directly.