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Franchise Financing

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Simple Application

Our simple 15 second online application can get you matched with offers in minutes.


No Minimum FICO

Bad credit? No problem! Most of our top financing options have no minimum FICO.


Larger Amounts

Get matched with the best financing options with the highest funding amount.

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Same Day Funding

Our FinTech Speed can get you in and out of Underwriting in just a few hours, and same day funding!

How Do I Qualify
3+ Months in Business

You can qualify for our top financing options with as little as 3+months in business.o

$5,000+ Monthly Gross Sales
The minimum revenue to qualify for financing options are $5,000+ per month, or $60,000 in annual gross sales.+
No Minimum FICO
We have financing options for all credit profiles. There is no minimum FICO score required to apply.
What is Franchise Financing?
Options for Funding a Franchise

Franchisees usually have more than one way to finance the purchase of a franchise and may even be able to combine funds from different sources to achieve the necessary capital. Options include:

  • Franchisor financing

In some cases, franchisors may offer financing directly through the parent company, but more commonly, they partner with preferred lenders who administer the loans to their franchisees.

  • Commercial bank loans

Franchisees can apply for a commercial loan with a bank of their choice. Approval usually requires a good credit rating and a detailed business plan.

  • Small Business Association (SBA) loans

Because the federal government backs a portion of SBA loans, they generally have more favorable interest rates and repayment terms than commercial banks loans. Type 7(a) loans are ideal for new franchises, compared to type 504 loans, which have more limitations.

  • Alternative lenders

If a franchisee is unable to secure a commercial bank loan or an SBA loan, alternative lenders may be an option. Their approval process is faster and less stringent than that of traditional lenders, but the interest rates are generally higher and the repayment periods are shorter.

  • Personal assets

Savings accounts, severance packages from previous employers and home equity and retirement savings plans are sometimes used to help finance a franchise. Leveraging personal assets, however, can jeopardize financial security in the future.

  • Rollovers as business startup (ROBS)

ROBS is a method of withdrawing money from a 401(k) or other retirement savings accounts to fund a new business without incurring penalties. Rollovers are risky if not done correctly and although legal, the IRS considers them questionable.

  • Crowdfunding

Lacking few other options, entrepreneurs may attempt to raise money via online forums. Investors typically receive early access to products, shares in the company or other perks in exchange for their investment.

  • Friends and Family

Borrowing from friends and family is an attractive choice for those who have poor credit ratings or can’t afford to pay interest. This type of funding can negatively impact personal relationships, though, especially if the venture isn’t successful.

Who qualifies for franchise financing?

Entrepreneurs who qualify for franchise financing generally have positive net worth, or more assets than debts. Many franchisors will ask to see a personal net worth statement before seriously considering any investor. They also may require the franchisee to have a minimum amount of liquid assets at their disposal to cover start-up costs, living expenses and other financial obligations until the business becomes profitable.


Frequently Asked Questions

When you’re looking to finance a franchise business you may want to reach out to your franchisor to see if they have any available options to help with your financing needs. Regardless, you may still want to shop around because you may be able to find cheaper options on your own. 

Alternative lenders generally have financing options for franchises that may assist with your franchisor mandated updates, at a lower cost. Once you have determined the type of financing you’re looking for and the lender you would like to work with, you will have to complete an application, and provide necessary paperwork such as bank statements, personal credit reports, drivers licences and voided check. 

TRAM Funding has access to franchise financing options. To learn more complete our 15-second online application and speak with a business financing advisor today.

When it comes to sources for financing a franchise there are many options available. Options include:

  1. Franchisor financing
  2. Traditional bank loans
  3. SBA Loans
  4. Alternative lenders
  5. Family and friends

It’s best to consider all your options when looking to finance your franchise to see what products fit your business needs best.

Learn more about different sources of financing that are available to a franchise by completing our 15-second online application

In order to qualify for franchise financing you’ll have to have a solid credit score, business financials and a minimum of two years in business. For those looking to financing an additional franchise, business owners may be able to leverage their existing franchise to meet those requirements for their expansion.

Find out if your franchise qualifies for franchise financing by completing our 15-second online application today.

All franchises, whether they be high or low-end options, require money on the part of the investor. Those with limited funds might need to wait and improve their financial situation before embarking on a new business venture.

Learn more about different sources of financing that are available to a franchise by completing our 15-second online application

Franchisees who have good credit history and a business plan may be eligible for a commercial loan with a bank. It sometimes helps to apply with financial institutions that have experience working specifically with franchises and not just small businesses.

Learn more about different sources of financing that are available to a franchise by completing our 15-second online application

The Small Business Association (SBA) allows investors to borrow up to $5 million for the purpose of opening a franchise or small business. Other lenders may have different limits, depending upon the individual’s credit history and business plan.

Learn more about different sources of financing that are available to a franchise by completing our 15-second online application