Cafe2U is a relatively easy franchise to finance. If your credit score is good, you can explore several options.
Lending is making a comeback. Even unsecured loans are now available to borrowers with excellent credit. If your credit is well above 700, you may be able to qualify for an unsecured loan to finance your franchise. Cafe2U has low startup costs and a proven revenue model, and the van and espresso equipment function as collateral — all of which makes it easier for bankers to say “yes.”
A large percentage of our first American franchise owners were able to obtain financing for more than 90 percent of their investment. One franchisee financed his franchise purchase completely with a U.S. Small Business Administration loan through a small community bank.
Cafe2U has teamed with BoeFly.com to help potential franchisees find lenders. BoeFly acts as a matchmaker between entrepreneurs and banks — matching financial profiles of borrowers with the lending criteria set by hundreds of banks. BoeFly directs loan applicants’ information to the banks most likely to lend.
Retirement funds are another common source of startup capital. If you have a 401(k) from a current or former employer, you can use that money, penalty-free, to start a business. The process can be tricky — it involves forming a corporation and a special type of retirement account, then rolling over your old IRA — but it’s no problem for a skilled accountant.
For those with weaker credit or less money, the SBA is an option. SBA loans have stringent lending and documentation requirements, so it can take longer to get one — but Cafe2U has taken steps to cut down the wait. Cafe2U is on the SBA’s franchise registry, which means the SBA has reviewed all our financial disclosure documents. That allows potential franchisees to bypass several layers of red tape and months in the loan approval process.
Curious about your options? Make an appointment to speak with us by filling out our franchise report form; we’ll be happy to talk through the options and see if a Cafe2U franchise is a good fit for you.