How BoeFly Helps Multi-Unit Franchisees Land Conventional Loans
Business owners have to have grit, drive and expertise to make their dreams a success-and they also need access to capital to help them grow when the time is right. That’s where we come in.
BoeFly was created 10 years ago to help new and existing franchisees connect with financing sources for their business needs. While many small business owners and franchisees get started with the help of Small Business Administration (SBA) loans because they lack the track record and financial wherewithal to secure a conventional loan, many seek to graduate to conventual loans because of the advantages they offer.
The Benefits Of A Conventional VS. SBA.
Investors who are just starting in the franchise world and who may have only one or two units are generally only able to qualify for SBA loans, because they don’t yet have the proven track record that would entice a commercial bank to take on the risk. Multi-Unit Owners are usually the investors who are seeking-and qualified to receive-conventional loans. (Investors with a high net worth are typically not eligible for SBA loans-their only route is conventional loans.) Securing conventional financing is attractive for many reasons. An SBA loan requires collateral-typically in the form of a lien on the borrower’s house-while conventional bank loans do not. Additionally, conventional loans have a faster approval time and less cumbersome paperwork process, helping entrepreneurs secure the money they need when they need to keep growing their business.
Speed Growth While Building Your Reputation.
Just like SBA loans, owners can use conventional loans to cover business expenses, purchase equipment, or as working capital. Unlike SBA loans, conventual loans have a faster approval time and less paperwork. As a business owner, your continued ability to repay conventional loans establishes your reputation as a credit-worthy enterprise-enabling you to borrow more when you need it.
A Smart Move To Save Money.
Another reason to make the jump to conventional loans is more attractive terms. A Multi-Unit Owner who may have reached their debt limit with SBA loans could be eligible to consolidate debt and refinance their loans at a lower percentage rate with a commercial bank. BoeFly’s advanced fintech solutions tools and access to banks of all sizes nationwide helps Franchise Owners find the right solution for their financing needs.
Our Process Helps Stakeholders Make Confident Decisions.
Conventional lenders have to thoroughly vet potential candidates to make sure they’re a good loan risk. Lenders need accurate data about a prospect’s liquidity, net worth, credit, and track record of performance. Borrowers need to have access to a wide range of reputable banks and lenders who are willing to work with them. BoeFly helps streamline the process by providing accurate data to both parties as well as facilitating application and approval processes. We use technology to help everyone involved make the right business decision, more quickly and efficiently.
Trusted Technology Drives Growth.
Conventional loans aren't backed by the government like SBA loans are, so the bank assumes 100% of the risk if the borrower defaults. Because of this, most conventional loans require you to have a good credit score, strong financials and have an established track record as a business owner. That’s where BoeFly’s unique suite of services and products can help. Our technology platform, along with our expansive network of lenders, was built to accelerate franchising growth. We connect financial institutions with bank-ready borrowers they otherwise might not have access to. Our process helps banks and credit unions:
- Streamline document access online so they can evaluate and process loans faster.
- Connect the right business borrowers to the right lenders through our loan marketplace.
Building Success One Owner At A Time.
We recently helped entrepreneur Eric Danver, Hand & Stone Massage and Facial Spa’s largest multi-unit franchisee secure financing through a conventional lender on the company’s platform. With BoeFly’s assistance, Danver, who already owned 19 units, was able to acquire five additional Hand & Stone units and set up a line of credit for future acquisitions.
“As a longtime multi-unit franchisee, I know it is always important to look ahead and reduce any obstacles that can slow down or prevent growth. BoeFly did just that by promptly securing competitive financing for us to acquire more units,” said Danver. “Without BoeFly, we wouldn’t have connected with the conventional lender which empowered our latest five-unit purchase. More importantly, we were able to think ahead by also clearing the path for future acquisitions.”
High-performing franchise brands provide a wealth of opportunity for growth, and many franchisors are willing to work with their franchisees to help them secure financing that can accelerate opening more units, because both the franchisee and the franchisor benefit. If you’re a strong candidate for a conventional loan, connecting with BoeFly can streamline the process while giving you peace of mind.
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