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Finance

Access to capital is the lifeblood of franchise growth. Restricted lending policies of the past few years continue to be a challenge for franchisees, who need access to capital, whether to survive or expand. Lenders today are searching for solid franchisee organizations to do business with, but what exactly are they looking for? Learn what bankers, franchise lenders, private equity firms, and other capital sources want to see in a borrower - and make sure you are managing your organization in ways that make you attractive to lenders.

Learn more about the franchise finance and capital marketplace, and what factors are affecting your chances to borrow the capital you need to grow.

Feature Story:

Funding Growth: Deciding Whether To Use Debt Or Equity To Fund Your Growing Enterprise »

By Jenny Q. Ta

Loan financing and equity investment are two common methods of funding a new business start-up, assuming you do not have the capital on your own. Each strategy has advantages. The right choice depends on your short-term and long-term financial goals and personal preferences.
Debt financing is the better choice when you prefer to retain control of your operation, and you do not mind the tradeoff of greater risk for higher earning potential. However, if you would rather share the risk, mitigate debt obligations and bring in top-level experts, invite equity investors.
Ultimately, it will be up to you depending on your own situation.  As a seasoned entrepreneur, author, and CEO of Sqeeqee.com, the first-of-its-kind social "networthing" site, I have identified the following things to consider when making your decision...

Feature Story:

Retirement Planning: Knowing When It's OK To Play It Safe And When It's Not »

Multi-Unit Franchisee

As people get closer to the age when they hope to retire, traditional wisdom calls for moving into more conservative - safer - investments, such as Treasury bonds and many fixed-income mutual funds.
"The problem is, what is 'safe' for one person may not be 'safe' for another, given the amount of money in their portfolios, how their investments are allocated, and what their retirement lifestyle goals are," says financial advisor Haitham "Hutch" Ashoo, co-founder with advisor Chris Snyder of Pillar Wealth Management, LLC.
"Some investors believe Certificates of Deposit and U.S. Treasury bonds are safe investments because of their backing, but the income they generate is so low, they may not be safe in terms of producing the income you need for 30 years of retirement...

Feature Story:

7 Tips For Managing Your Banker »

By Steve LeFever

Banking basics for tough times
In these challenging times, it pays to be as prepared as possible. Here are some suggestions from the banker's side of the desk that will help increase your chances of success when it comes time to renew or renegotiate your current loan structure.
First, it's no secret that the banking industry has taken a hit over the past 48 months. Bank performance (or lack thereof) has been front-page news for some time. Here's an overview of what's happened, where we are, and what it means to you.
A generally robust economy since 2003 lulled banks into more of a "sales" mentality and less of a "credit analysis" mentality. As a result, credit standards were lowered, documentation pared down, and the loan decision process watered down...

Feature Story:

Implementing The Affordable Care Act »

By Benjamin Geyerhahn

What franchisees need to know about the ACA rollout

The Affordable Care Act (ACA) has introduced widespread changes to the healthcare landscape. It has increased the availability, quality, and affordability of health insurance for the general population, regardless of age, gender, or pre-existing medical conditions.
The ACA has also altered the guidelines for employer-sponsored insurance, which has thrown many small- and mid-sized businesses for a loop.
In 2015, the ACA employer mandate will require employers with 50 or more full-time employees (defined as an average of 30-plus hours per week) to offer a minimum coverage health plan at affordable rates (less than 9.5 percent of an employee's household income).
Additionally, companies with 200 or more employees are required to automatically enroll employees in employer-sponsored insurance with a waiting period of no more than 90 days...


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