Call weekly to let them know where you are in the purchase process. Keep your banker informed about all aspects of your financial health. Educate Your Banker Most lenders readily admit they know little about franchising. If you are purchasing an existing franchise, tour the business with your banker. Remain Creditworthy Maintain a clean credit record.
Nothing sets off a red flag faster than a history of late payments.
This also applies to your personal finances. Inc. T hink of your loan proposal as a chance to create an ally for your business growth. The following guidelines cover the basics of a typical franchise loan proposal. Begin with an overview of the franchise concept, the franchisor, the would-be franchisee, and a summary of the franchise agreement. Lenders want to know if you are entering an emerging market or investing in a mature market segment that may be too risky.