Can A Business Cash Advance Save My Franchise?
September 15th, 2009
Can A Business Cash Advance Save My Franchise?
Discouraged by economic conditions some franchisers are cutting back on efforts to sell franchises writes Richard Gibson in his Wall Street Journal article Franchise Sales Pull Back During the Recession. But what about those small business owners that already own a franchise. How can they compete with the recession?
According to Jeff Elgin chief executive of FranChoice Inc. a firm that helps franchisers find prospective franchisees who Gibson quotes “A lot of companies entered the franchising business the last three or four years and many haven’t been doing very well recruiting franchisees.” He also says that this has to do with the fact that many wouldbe franchisees “who nine months ago would have gotten financing very easily are being held up.
In the past franchisees looked to banks for business funds but as bank lending has tightened and eligibility requirements have intensified the business cash advance is looking more and more appealing to franchisees.
Many owners of various franchises such as McDonalds Subway and Cold Stone just to name a few have already taken advantage of business cash advances.
A business owner does not have to own a franchise in the foodservice industry to be eligible for a business cash advance. In fact any franchisee whos owned his/her franchise for at least six months and processes a minimum of 3500 in monthly credit card sales is a likely candidate for a business cash advance from 5000 to 500000.
These funds are easy to acquire and the repayment is hasslefree. Franchisees who receive a business cash advance have their repayments automatically deducted as a small percentage from their businesss daily credit card sales a process that takes about 6 to 8 months to complete.
The business cash advance can be an excellent method of business financing for all types of small business owners in the retail and serviceoriented business industry. Business owners who are seeking additional funds should further research the business cash advance.
About the writer: Chrystal King writes articles about the business cash advance for Merchant Resources International.
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