Why Now is a Great Time to Explore Financing Options
Due to the economic impact of COVID-19, the Federal Reserve Board dropped interest rates
to near zero. Moving into fall 2020, federal interest rates
were about two points lower than what they were at the same time in 2019. The Fed rate acts as a benchmark for consumer interest rates on borrowed money, including mortgages, auto loans, and yes — small business loans. There is no guarantee how long these historically low rates will last, so now is a good time to apply for a loan, if that’s the route you choose to take.
5 Financing Options to Consider for Your Franchise Business
Explore the different financing options to find the best fit for your new commercial cleaning franchise business.
1. In-House Financing from Coverall®
When you learn about Coverall, you will discover that our goal is to help and support franchise business owners
every step of the way, and this includes in-house financing. When you meet with us for a franchise business presentation
— in person or virtually — we can explain the straightforward application process. This is a great choice for many people, including those without a lot of credit history.
2. Traditional Bank Loans
Reach out to your current bank or credit union, or shop around, and take advantage of those low interest rates. Make sure to compare repayment terms, the length of the loan and any incentives. For example, a bank might offer a lower interest rate if you also open a business checking account with them.
3. Business Credit Cards
Lower federal interest rates also affect credit card interest rates, and the better your credit the better rate you can get. A business credit card is a good way to start building your business credit history, which will become more important as you grow your franchise
4. SBA Loans
The Small Business Administration (SBA)
backs different types of loans for business owners
, depending on their needs. The approval process can take a long time, so plan ahead if you want to apply for one.
- SBA 7(a) Loans: These typically have low interest rates and favorable terms but are geared toward borrowers who need a lot of capital.
- SBA 504 Loans: This type of loan is for property, such as a building or equipment.
- SBA Microloans: Capped at $50,000, microloans are aimed at business owners just getting started.
Visit the SBA’s website to learn more about these products.
This type of funding is a bit more unconventional, but crowdfunding lets you tap your online network to raise money to start your business
. Explore crowdfunding platforms like Indiegogo, GoFundMe, and iFundwomen to find the right one for you. Then, set up your campaign and encourage your friends and family to help you spread the word. You won’t have any interest to pay back, but note that the money you raise will be taxed as income.
Invest in a Coverall Cleaning Franchise Business
Whichever option you choose to finance your cleaning franchise business, Coverall is here for you. Here are a few more things to keep in mind when weighing your options:
- We offer discounts for military veterans looking to own a franchise.
- No degree or special experience is necessary, so you won’t have to spend money on schooling or certifications.
- Since it’s a home-based business, a commercial cleaning franchise has no overhead costs like a brick-and-mortar business.
If you’re ready to explore a new opportunity in an in-demand essential service, get in touch with Coverall
. We provide thorough training in cleaning protocols based on CDC and AORN guidelines, designed to help eliminate bacteria and viruses. We also offer you 35 years of experience in commercial cleaning and a proven roadmap for running your independent franchise business. You can choose to participate in a franchise business presentation virtually or in person as the first step toward owning your own Coverall commercial cleaning franchise.