You’re serious about investing in a staffing franchise opportunity and just need some information on how you can get started. You’ve been working hard for someone else and your drive and determination are telling you that this is the right time to make great things happen. You’ve started taking a thorough inventory of your financial situation; including listing all of your assets, debts and how much funding you’ll be able to provide. You have some savings but you know that you will still need some additional capital in order to take advantage of this great opportunity. These are the top 3 places where you can find additional funding so that your staffing franchise dreams can come true.
1. Conventional Lenders
The biggest pluses with conventional bank loans are that they carry low-interest rates and the approval process is usually quite fast. It’s important to have all your documentation in order, however, because the lender will need to review at least three years of financials and will want to take a look at your tax returns. Strong credit scores also greatly increase your chances of getting a loan and you are typically required to provide some collateral; even with good personal credit. This can include anything from equity in your home or another large personal asset. Places to start gathering information are at your local and regional banks and also at your credit unions.
2. Small Business Administration (SBA)
The SBA will guarantee a significant portion of your loan, typically up to 80 percent. You have to meet certain eligibility requirements and this is similar to the way the FHA guarantees home loans. Here are 2 types of loans that can help jump-start your business:
- 7(a) Loan Program: This is the SBA’s primary lending program and the most basic, common and flexible type of loan. You can use this for working capital, to purchase real estate and also for buying equipment, furniture and fixtures. This loan has a maximum amount of $5 million and you can apply through a participating lender.
- Microloan program: This program offers very small loans to new or growing businesses and you can use this money for working capital or, for purchasing inventory, supplies, furniture, fixtures and equipment. The thing about this program is that you can’t use these loans to pay off any existing debts nor can you use them for any real estate purchases. You can get loans up to $50,000 and the average loan amount is around $13,000.
3. Rollovers as Business Startups
Another way to gain funding is by rolling over your 401(k), IRA or other eligible retirement funds and investing these dollars into your business. One of the biggest advantages of investing your own money is that this eliminates or minimizes your need for debt financing. This means that you will have more capital when you start out and you can use this money for things such as advertising, equipment and hiring expenses! The company stock becomes an asset of the retirement plan which keeps your retirement dollars tax-deferred and penalty free.
As you can see, there are several options available that will allow you to find the capital you need so that your staffing franchise can become a reality. Using this funding along with a compelling business model will allow you to set yourself apart from the competition and become the established entrepreneur you’ve always wanted to be. By having access to our expertise, technology, back office support, marketing and business development resources, this is how to take control while also enjoying the benefits of being part of a large, national organization. You have the support you need but are also in charge of your own business and your own future. This is what you’ve been searching for. Please contact us today and sign up for free information and downloads about the staffing industry; and see how the Nextaff staffing franchise will start you on your entrepreneurial journey.