Franchise Financing FAQ

Get answers to frequently asked questions about franchise financing.

Questions about franchise financing? We have answers.

What is franchise financing?

Franchise financing is funding that can be used to finance furniture, fixtures, and equipment (FF&E). In addition, franchise financing is an option for franchise owners who need funding to finance property improvement programs (PIPs), brand mandates, or remodeling and expansion initiatives. 

What are the benefits of franchise financing?

Franchise financing is intelligent because it does not require a large upfront payment that might disrupt your cash flow. Another benefit of franchise financing is that the monthly payments are predictable. Knowing how much is due each month can help you forecast your expenses. Finally, the equipment, furniture, POS systems, light fixtures, etc., that you finance might be eligible for the Section 179 tax deduction. Just make sure you confirm this with your accountant or business attorney.

How do I qualify for franchise financing?

Your franchise needs to be operating for more than one year, with $100,000 or more in annual gross revenues. Additionally, you need a FICO score of 620 or greater. We will also consider other criteria when evaluating your application. Your Balboa Capital account manager will explain our requirements to you in greater detail.

How do I apply for franchise financing?

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

What franchises can get financing?

Balboa Capital works with franchisees in many different industries. We are a preferred or qualified lender for some of the most prominent franchise concepts in the United States. In addition, we develop custom-tailored financing solutions for franchisees who need funding for brand mandates, remodeling, PIPs, and FF&E.

Do franchisors help with financing?

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.

What can I finance for my franchise?

Balboa Capital offers financing solutions for just about everything once your franchise is up and running. We provide funding to finance furniture, fixtures, and equipment (FF&E), property improvement programs (PIPs), brand updates, and remodeling/re-imaging.