If you're looking to purchase a dog boarding franchise concept but your local bank is dragging their feet on getting answers for an SBA loan, what do you do? In this Q&A segment from the Investor Financing Podcast, Beau and Bill Davis provide insights and recommendations on finding the best lender for your SBA financing needs.
SBA Financing for Pet Boarding Franchise
Small Business Administration (SBA) loans are a popular financing option for entrepreneurs looking to start or grow their businesses. The SBA provides loan guarantees to approved lenders, reducing their risk and making it easier for borrowers to secure financing. One of the benefits of SBA loans is that they can be used for a variety of purposes, including purchasing a franchise.
If you're looking to purchase a pet boarding franchise, an SBA loan can be a great financing option. However, it's important to find the right lender to work with. In the Q&A segment, Beau and Bill Davis provide tips on finding the best lender for your SBA financing needs.
Check the SBA Approved Directory
Before applying for an SBA loan, it's important to ensure that your franchise is on the SBA approved directory. If it's not, you may not be eligible for SBA financing. Assuming your franchise is on the approved directory, the next step is to find a lender that specializes in financing franchises.
Identify the Right Lending Partner
Not all lenders are created equal. When it comes to financing a franchise, it's important to work with a lender that has expertise in that area. Look for a lender that has experience financing franchises, particularly in the pet boarding industry. These lenders are more likely to understand the unique challenges and opportunities associated with the industry, and may be more willing to work with you.
Assess the Deal
Once you've identified a potential lender, it's important to assess the deal. This includes reviewing your financials, projections, and business plan to ensure that everything is in order. You should also be prepared to answer any questions the lender may have about your business and the franchise concept.
Make Introductions
If everything looks good, it's time to make introductions. Beau and Bill Davis recommend working with a specialist lender that has experience financing franchises. This could be a bank, credit union, or non-bank SBA lender. The goal is to find a lender that understands your business and is willing to work with you to secure financing.
Consider Other Lenders
If your local bank is dragging their feet on approving your SBA loan, it may be time to consider other lenders. There are plenty of lenders out there that are hungry for SBA financing deals, so don't be afraid to shop around. Look for lenders that are willing to work with you and have experience in financing franchises.
Final Thoughts
If you're looking to purchase a pet boarding franchise, SBA financing can be a great option. However, it's important to find the right lender to work with. Look for a lender that specializes in financing franchises, and be prepared to answer questions about your business and the franchise concept. If your local bank is dragging their feet, consider working with a different lender that is more willing to work with you. With the right lender, you can secure the financing you need to make your franchise dreams a reality.