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In Capital Letters

There are three things you simply have to know before financing a franchise: S-B-A.

This story appears in the January 2002 issue of Entrepreneur. Subscribe »

There's no use waiting for cash to fall from the sky. To get funding for your franchise, you have to know where to look.

According to Brad Gilbert, national franchise manager with Comerica Bank, the best way for a prospective franchisee to get financing is via an SBA loan. "It's a great vehicle," says Gilbert. "You're typically getting in with less equity than with a conventional loan, and most lenders won't touch deals without that SBA guarantee."

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