Financing Your Franchise

Franchise Financing Specialists

Some lending institutions, including banks and finance companies, specialize in franchise financing or have specific departments that do so.

One such lender is Franchise Mortgage Acceptance Co. (FMAC), which has loaned $1.3 billion to franchisees since it started in March 1991. It expects to loan $700 million to $800 million in loans this year. "We are a preferred lender to many franchises," says FMAC founder and president, Buz Knyal. "We loan money to more than 100 separate franchise concepts and have more than 130 employees on staff."

Both FMAC and AT&T Capital Corp. screen franchisees by closely evaluating them for the four C's of credit mentioned earlier.

"We look at a franchisee's character and credit history," Knyal says, "as well as the financial strength of the franchisor."

The likelihood of finding financing for your franchise today is better than ever. Most lenders realize that loaning to franchisees can be a worthy investment. Take advantage of this opportunity in the marketplace when looking for funds for your new business.

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This article was originally published in the September 1997 print edition of Entrepreneur with the headline: Financing Your Franchise.

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