Franchise Finance: Can You Have a Franchise with Bad Credit?
Monday, May 12th, 2008Not everyone has great credit and if you are looking at franchise opportunities longingly and wishing you had better credit . . . it´s time to make your dream a reality. You can´t magically improve your credit rating and most banks won´t be interested in financing you.
However, there is an upside. If you want to finance your franchise, you can often qualify for a microloan. These loans are fairly small, but they can help you cover the initial investment, particularly if you are going for a low fee franchise opportunity.
You will want to talk to a microlender to find out what your options are. In general, they will charge a higher interest rate than a regular bank loan, but if you really want to have your franchise and are confident that it will help you rise above your bad credit, then it will often be worth it.
Just because you don´t have the best credit doesn´t mean you can´t invest in a franchise. It just takes some extra investigation. Find a microlender that you can trust and make sure you speak with the franchise ahead of time to make sure they are ok with your credit history. Then you should be able to proceed as normal.
