Are you interested in purchasing a franchise, but don’t know where to start for financing? Franchise financing can be a frustrating process without knowing your options:

1. SBA Financing
The Small Business Association will guarantee a portion of a loan to you for a new business if you qualify.

2. Non-SBA Financing
There are commercial lenders that specialize in franchise financing through equipment leases and structured term loans.

3. Retirement Plans
There is also the Audeo program, using your 401k or IRA as start-up capital without penalties, taxes or distributions. This is available through companies like Guidant Financial Group (www.guidantfinancial.com).

4. The Franchisor
Many franchise companies either offer financial assistance themselves or help franchisees find a bank or other lender. Most have a lists of "preferred lenders".

5. Personal Assets
Whether it's SBA or non-SBA financing, anywhere from 15 to 30% of the total capital need can be required of the borrower. Franchise start-up costs vary wildly across franchises, so this could be anywhere from $20,000 to $200,000. A borrower may need to refinance their personal propery or liquidate stocks, bonds, IRAs, 401k, etc.

This is where investors can share information about financing the purchase of a franchise or franchises.