Forums: Discussions for entrepreneurs and small business.

I just joined this forums last night, and I can not stop reading on vast information on this site. My main concern for joining this forum is to find out how and where I can get the loan I would need to open up a Subway.

I have worked at Subway before, and know the potiental it has to make money, and thus the reason why I want to be a owner myself.  I pretty much know everything on running it, but lack the cash to own one for myself.

My current situation is that I am working full time, trying to get out of my 4k credit debit and then start focusing on working on my credit to get a better credit score so that I may apply for sba loans (if I can). I also intend to get about 30,000 from friend/family.  I know that opening a new subway would be between anywhere from 114,000 to 258,000

I guess my real question is what would be the best way to get a loan for someone in my situation?

Virtually all of the prime franchise companies have connections to lending companies. I'm sure Subway offers it. I'd begin by determining what they require as qualifications.

Thanks Robertj, i filled out an application for franchise on their site last night and I will see where it goes from there.  I will keep ya guys posted, this might help out others who are also looking into subway hopefully.

hits79,

Great. Once you have the information from them and know the qualifications - you can start working toward meeting them or look at alternative funding approaches.

As already stated, most franchisor either have financing options in place or have preferred relationships with other lenders.  Thus, always start there.

You could also call around to other Subway owners - in your area and in other states and ask them how they went about financing - it might just open your eyes to other avenues.

Lastly, you can always network in your local community.  There are CPAs, Lawyers, Doctors, Other Business Professionals that like to invest locally.  You might be able to put together a group to purchase your franchise.

BMT2010 you have a good point about local investors. How to go about finding these groups? I started a home health care business and like to get more local groups involved.

Thanks

Mr Brown,

These are not groups per say.  These are individuals that you get out and find in your community.  This means attending networking events and talking with everyone who will listen.  Even if those that you talk with do not invest in your business - they may know of others who will.

Find events in your area - attend them - and talk to everyone.  Make sure you have a strong pitch - one that shows your potential and what is in it for the investor.

Lastly, read up on the SEC's Reg D rules.