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Franchising: A Perfect Fit for Veterans

by Heidi Lynn Russell, Contributing Editor

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Securing Funding for Franchising

There are many funding sources for veterans to start franchising businesses, but George Eldridge of the International Franchise Association suggests you hit them in the following order:


1. Start with the franchisor itself. “They have financing recommendations and work with specific banks. Find out what financing is available through them,” he says.


2. Then look at the Small Business Administration, which offers the Patriot Express Loan for up to $50,000, as well as larger loans for which veterans are eligible.


3. From there, consider peer-to-peer lending. “Sometimes the interest rates are higher, but they’re easier to get,” he says.


4. Ask friends and family for help.


5. Your last option is to roll over your 401(k) into your business. But this should be a final resort. “Unfortunately, you have to look at a business realistically. If you fail, what do you have left? Military members don’t like to talk about failure, but look at both sides of the coin,” Eldridge says.


Heidi Lynn Russell writes about employment and business issues.


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