Is it Harder to Finance a New Franchise or Acquire an Existing Business?

Is it Harder to Finance a New Franchise or Acquire an Existing Business?

Are you a real estate investor or business owner looking to expand? Book a discovery call with Beau to learn all the ways he can help you - https://investorfinancingpodcast.com/rumble

Hi Beau,

I’m going back and forth on whether to buy a franchise or acquire an existing business. What is easier to finance? Thinking about SBA loans…

Thank you, Sean

When considering whether to finance a new franchise or acquire an existing business, this episode suggests financing an existing business may be more accessible due to its established cash flow and revenue stream. Buying a 20-year-old business with a proven track record of steady income can make the financing process smoother compared to starting a franchise. However, financing existing franchises is not significantly more challenging because some banks specialize in financing specific franchises.

Meeting eligibility requirements is crucial for securing financing in either case. The transcript highlights the importance of SBA loans and government-guaranteed products that can be advantageous during tightening market conditions.

Additionally, the seller may be willing to provide some financing in an acquisition, allowing the buyer to contribute less equity. Both options have pros and cons, and the speaker encourages discussing the details to find the best solution. Interested individuals are invited to book a call to explore SBA financing options, including the 7A and 504 loans, and to receive guidance on various types of financing for different business scenarios.

If you'd like to ask me a question about real estate, do it here -- https://investorfinancingpodcast.com/ask

Timestamps:
(00:03) Question about financing options for buying a franchise or acquiring an existing business
(00:20) Easier financing process for acquiring an existing business with proven cash flow
(00:39) Getting more aggressive financing on buying an existing business versus starting a franchise.
(01:17) Financing considerations for franchises and existing businesses
(01:42) Advantage of the acquisition
(01:55) Book a call at https://investorfinancingpodcast.com/rumble

💥 Thanks for watching 💥
#franchisebusiness #franchise #franchisefinancing #sbafinancing

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance all your projects.

About the Channel: Want to structure your investments in the right and secure way?

Learn great insights and make the right decisions through the Investor Financing Podcast hosted by Beau Eckstein.