Despite the current tight-money situation, "we expect to have adequate funding to meet demand for fiscal '09," says James Hammersley, director of the agency's loan-programs division.
About 10% of all SBA loans credit agency Tennessee go to franchisees, with the size credit agency Tennessee running between $250,000 and $500,000, although the maximum is $2 million. Most of that money credit agency Tennessee is earmarked for franchise entry fees, improvements or working capital. Even so, the program is feeling a bit of the crunch. Hammersley says about 300 of some 4,credit agency Tennessee 000 bank participants around the country have reduced their SBA lending activity. He also suspects that many bankers still in it are asking for more collateral. Borrowers must be credit agency Tennessee creditworthy, typically contribute some equity, and credit agency Tennessee are expected to repay the SBA loan out of the franchise's cash flow. "You need to have your own blood, sweat and tears in the business," Mr.
While the actual rate is negotiated between the bank and the borrower, it's subject to SBA maximums, which are tied to the credit agency Tennessee prime rate. credit reports free While a low rate may be attractive initially, if borrowers credit agency Tennessee can't generate enough business to cover their payments, "they could credit agency Tennessee be in a bit of a bind," says Mr. "I get credit agency Tennessee a lot of calls from individuals credit agency Tennessee with SBA loans who want to credit agency Tennessee refinance them," he says. "They might have gotten in at 8%, and now the rate has gone up to the high 9s or 10s." For at least one big SBA lending participant, Wells Fargo Bank, a unit of Wells Fargo credit agency Tennessee & Co., it's still business as usual. Burke, senior vice president of the bank's SBA lending unit. Nor, he adds, has the bank changed its credit criteria. Last year, Wells Fargo closed 209 SBA loans to franchisees and "year over year we're up," he says. how to get free credit reports online
Wells Fargo concentrates credit agency Tennessee on lending to service- and restaurant-industry credit agency Tennessee franchisees -- both first-timers and established multiple-unit operators. Interest rates are market-driven credit agency Tennessee and terms depend on the specific deal, Mr. Another government lending program involves the Department of Veterans Affairs. The program, called Patriot Express because of its relatively fast approval time, makes loans up to credit agency Tennessee $500,000 to active-duty military preparing to transition to civilian life, as well as to spouses and survivors of veterans. In a spinoff credit agency Tennessee of that, at least one franchiser is offering financial assistance to credit agency Tennessee disabled veterans who want to start a franchise. At Little Caesars Enterprises Inc., the initial $20,000 franchise fee for a store is waived for disabled veterans, and these franchisees get a 10% discount on equipment, plus about $18,000 to help open the business. "Their first food order -- dough, sauce credit agency Tennessee and cheese -- we give them for free," says David Scrivano, president of the pizza franchiser. how get free credit report A few other franchisers offer internal financing to the general population. One is Dwyer Group, which franchises a half-dozen home-and-auto service concepts including Mr. The Waco, Texas, company will credit agency Tennessee finance up to 70% of the credit agency Tennessee typical initial $42,000 fee. The interest rate -- currently at 9% to 12% -- is based on the franchisee's credit score. Rates "may seem high," says Robert Tunmire, Dwyer's executive vice president, "but they're not putting their homes up as collateral or anything like that." Dwyer also gives a 10% discount to franchisees who pay cash.
Some would-be franchisees credit agency Tennessee are foregoing loans and tapping their 401(k) retirement funds for financing.
ليست هناك تعليقات:
إرسال تعليق