Franchise Financing FAQ

Franchise financing is funding that can be used to acquire new furniture, fixtures, and equipment, or pay for remodeling and expansion initiatives. 

This is a smart choice because it does not require a huge upfront payment that would disrupt your cash flow. This keeps your cash where it should be: in your bank account. Another benefit of franchise financing is that it lets you enjoy predictable fixed monthly payments. Knowing how much is due each month can help you forecast your expenses easier. Finally, the equipment, furniture, POS systems, light fixtures, etc., that you finance might be eligible for the Section 179 tax deduction.

Your franchise needs to be operating for more than one year, and it needs to have $100,000 or more in annual gross revenues. A satisfactory credit score is also required.

To get started, complete a franchise financing application that takes just a few minutes to complete. We will notify you with a credit decision promptly during our normal business hours, and one of our franchise financing experts will call you to discuss the next steps and get everything in order.

Your interest rate will depend on your credit score, the amount of funding you need, and the term length you want. We have some of the most competitive rates in the industry.  

Balboa Capital works with franchises in all industries nationwide. We are a preferred or qualified lender for Choice Hotels, Wyndham Hotel Group, Papa John’s, Burger King, and McAllister’s Deli, among others. We develop custom-tailored financing solutions for their franchisees who need funding for brand mandates, store remodels, and equipment.

Yes. Some franchisors work closely with lenders to develop special financing programs with competitive rates for franchisees. This is a common practice for mandatory brand updates, which can be very expensive, particularly for multi-unit franchise owners.

We offer financing solutions for just about everything once your franchise is up and running. We provide funding for furniture, fixtures, equipment, property improvement programs, brand updates, and remodeling/re-imaging.

Balboa Capital offers application-only funding of up to $500,000 for hard collateral, and up to $350,000 for soft collateral. Franchise business loans of up to $250,000 are typically funded on the same day, too. 

If you don’t have the capital available to cover your day-to-day franchise costs, Balboa Capital can help. We offer franchise business loans that can be used for employee payroll, supplies and inventory, and taxes, among others.