| Loan Name |
Description |
Advantage |
|
A FranFund vehicle that allows for investment of monies from IRAs, 401(k)s and other qualified plans into the business, tax-free and penalty-free. |
- Limits debt in start-up phase of the business
- Can be used as required equity injection component for other debt instruments
- Allows for attractive tax-deferred retirement savings options in the future
|
|
FranFund Business Commercial Loan
|
Exclusive funding option for “FranFund Select” franchises. Typically includes funding for a percentage of both hard and soft costs but not working capital. May be structured as a conventional loan or a lease. |
- Fewer documentation requirements
- Very quick credit decisions
- Lower closing costs than most alternatives
- Typically no additional long-term collateral requirements
|
FranFund SBA Loans |
FranFund utilizes a network of bank and non-bank lenders to fund these government-backed loans to ensure the right fit for each client. Accelerated approval and closing process for FranFund approved concepts. Typically requires a cash injection of 15%-30% but will fund working capital needs. |
- Cash flow friendly for the borrower
- Lower, floating interest rate tied to prime rate
- Slightly less stringent credit requirements
|
Capital Lease Programs
|
Programs that allow FranFund approved concept clients to lease rather than purchase equipment packages and may include some traditional soft costs. May be used in conjunction with other products in capitalization strategy. Attractive for remodel/upgrades and additional equipment purchases as the franchise grows. |
- Quick approval process
- Minimal closing costs
- May have significant 2008 tax advantages
|
FranFund Signature Direct
|
Signature only, unsecured line of credit attached either to the client personally or to an existing business. Typically used in conjunction with other capitalization products. Funds are “on call” as a safety net for unexpected costs. |
- Quick approvals and funding access
- Interest payments only on funds that are being utilized
- Minimal usage restrictions
|
Home Equity Loans
|
Allows client to utilize the accumulated equity in primary or secondary residences. |
- Lower interest rates
- Interest may be tax-deductible
- Good source for reserve capital
|
