Business Finance Depot Partners With Francorp; Provides SBA and Leasing Combo to Franchisees
Business Finance Depot has teamed up with Francorp, a franchising development business. According to the two companies, they will help businesses access financing to study, plan and launch franchises. Business Finance Depot has been financing new franchisees for various franchise concepts for more than 10 years. Francorp assists franchisors with building out their franchise program and expansion plans. Under the partnership, Business Finance Depot will provide Francorp clients with up to $150,000 to underwrite the franchising process.
Business Finance Depot’s franchisee financing includes an innovative equipment leasing and SBA Express loan combination that keeps rates lower, said Paul Bosley, managing member of the finance company: “… An SBA Express loan perfectly complements an equipment lease for financing a new franchise and the expansion of an existing franchise.”
According to Bosley, the Express loan is capped at $150,000 to limit the lender’s risk, since the borrower’s real estate collateral is not required and the business assets are used to collateralize the loan. The equipment is the collateral for both the Express loan and the equipment lease, making them compatible. The advantage of this is it doesn’t require the borrower to use their home as collateral.
“This is a good fit for franchises that require a lot of equipment,” said Bosley. Business Finance Depot gets paid by the SBA lender, so that frees up even more capital for the business owner. “We tend not to mark up the leases, because otherwise it doesn’t make sense for the borrower. We keep our margins tight.”