How to Fund Your Franchise: Top Creative Financing Strategies


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Feb 04 2025 34 mins  
Welcome to another insightful episode of The Advisory Board Podcast, where we bring in franchising industry experts to help you build resilient and thriving brands, no matter the economic climate. A special thank you to our episode sponsor, ClientTether, for making this conversation possible!

This episode features Ron Davison, Chief Revenue Officer at Jumpstart Financing, who shares groundbreaking insights into franchise funding. As traditional financing becomes increasingly challenging, Ron and his team are disrupting the lending space with their innovative Jumpstart Loan Program, offering a concierge-style approach to franchise financing.

Franchisees often rely on cash, 401(k) rollovers, SBA loans, home equity lines of credit (HELOCs), and unsecured funding. SBA loans, while a go-to for many, come with red tape and lengthy approval processes, sometimes causing major friction in deals. Jumpstart Financing introduces private lending solutions, streamlining funding with faster access and fewer bureaucratic obstacles.Unlike robotic loan processing, Jumpstart provides tailored financial strategies, combining multiple funding sources to meet franchisees' needs. Their in-house direct lending model removes unnecessary hurdles, offering unsecured loans up to $250K and secured options beyond that.Stacking financing solutions—such as leveraging a HELOC alongside an SBA loan—can optimize funding. Equipment loans can be a smart way to build business credit and gain access to additional financing down the road.

Franchise brands should focus on financial readiness, ensuring their FDDs, ROI projections, and operational support make them attractive to lenders.With traditional lenders tightening restrictions, private financing is emerging as a game-changer for franchise owners and emerging brands. Jumpstart’s approach to vetting franchise brands ensures that franchisees are set up for success with logical, strategic lending decisions rather than cookie-cutter banking models.

To prepare for financing, franchisees should work with financial advisors before applying for funding. Maintaining diverse credit lines, keeping credit utilization under 30 percent, and avoiding the quick closure of accounts can enhance credit profiles. Exploring multiple funding paths beyond SBA loans, such as unsecured loans, private lending, and strategic financial stacking, can provide better financing options.

Ron Davison and his team at Jumpstart Financing are ready to help franchise brands, consultants, and prospective franchisees navigate the funding landscape. If you would like to connect with Ron, you can reach him via email at [email protected], visit JumpstartFinance.com, or find him on LinkedIn.Thanks for tuning in to The Advisory Board Podcast. Be sure to subscribe for more expert insights into franchising and business growth strategies. See you next time!