Which Funding Option is Right for my Franchise?

green and white sign on the side of a road that prints "entering startup"

Investment Concept There are a number financial programs you can consider for your startup costs, but each one should be thoroughly researched before making a final decision. Pango Financial can guide you through the barrage of traditional and innovative funding solutions so you’re getting the best opportunity for your business dreams. 1) Rollover Retirement Accounts to Invest in Your Dream One franchise financing option is to roll funds from your 401(k) or other retirement accounts into your business investment plan. This program is known as the DreamSpark plan. The DreamSpark plan allows you to invest in your franchise with rollover dollars from your 401(k) or other eligible retirement accounts tax deferred and penalty free. It is also a tool that allows you to continue to save for retirement through 401(k), profit sharing or match contributions. 2) Small Business Administration Loan Programs The Small Business Administration offers a variety of loan programs under the SBA 7(a) umbrella to encourage lenders to extend capital to small business owners. Typically, over the long haul, these loans offer much more favorable terms than credit cards and some other business loan options. The SBA program also can be paired with the DreamSpark plan. With the DreamSpark plan, your retirement dollars can be used to satisfy the 20-30% equity investment required based on the total project. 3) Crowdfunding Through Portals Crowdsourcing is a relatively new funding strategy, but has quickly gained popularity with the growth of social media. There are many benefits to hopeful franchise owners, investors and the community with this type of funding because it can limit the amount of debt you may generate with your business, and it provides outside support for it. On the other hand, crowdfunding can be a difficult funding strategy to rely on because of your inevitable dependence on other people — people who are more often than not strangers. If you have questions about which funding option is best for your business dreams, contact us today to speak with our financial experts and get a free consultation]]>