Buying a franchise is an exciting step in your career journey. Owning a franchise gives you the opportunity to own a small business without having to start from scratch. Most people are under the perception that they need hundreds of thousands of dollars to start a franchise, but at Mosquito Authority, we offer a number of funding options to get your mosquito control business off the ground.
When you start your own Mosquito Authority franchise, one of the funding options available to you is an SBA (Small Business Administration) loan. Many of our current franchisees have used SBA loans to get their businesses started. An SBA loan is aimed at helping entrepreneurs start and grow their small businesses, making it a great option for franchisees.
SBA loans are secured with the help of our partner, Benetrends Financial.
How does an SBA loan work?
The Small Business Administration does not directly loan money to business owners. You can secure an SBA loan by going through an SBA-approved lender, such as a bank. Because the SBA guarantees a portion of this loan to the bank, financial institutions are taking less of a risk and have an incentive to support small businesses.
What is required to qualify for an SBA loan?
Qualification for an SBA loan is based on 5 factors:
- Strong personal credit
- Industry experience
- Business is for-profit
- Good character
- Collateral may be required
What does the process of securing an SBA loan look like?
The process of securing an SBA loan consists of five steps:
- Pre-Qualification: The Pre-Qualification step consists of completing a Benetrends assessment form, speaking with an SBA funding specialist, and obtaining a pre-qualification letter. After completing the assessment form and submitting your credit report, a funding specialist will determine your loan amount based on that information. This process typically takes anywhere from 24-48 hours to complete.
*Pre-qualification letter is provided free of charge.
- Loan Processing: During the Loan Processing stage, Benetrends will guide you through your loan file, which contains an informational checklist along with other forms needed for completion. After you submit all of the required information, Benetrends will review your file and notify you if it is approved. Benetrends then submits your loan package to banks best equipped to meet loan needs.
- Bank Proposal: Benetrends will review all bank proposals with you to determine which one best meets your needs. After reviewing the proposals, you will choose which bank you would like to move forward with.
- Bank Approval: After selecting your bank, you will go through a formal approval and underwriting process and receive a formal commitment. This step typically takes five to ten business days.
- Loan Closing: You will work with your bank to fulfill the SBA loan program requirements.
Read more about the SBA loan process.
Some of the pros of taking out an SBA loan include:
- Lower down payments
- SBA loans typically offer attractive payment terms and interest rates
- Funding is available from $50K to $5 million
Securing an SBA loan is a great option for those looking to start their own mosquito control franchise. While finding the money to start your own business may seem daunting, SBA loans exist to help entrepreneurs have success in their small business ventures.
At Mosquito Authority, our team members experts at working with potential franchisees to secure SBA loans to assist in buying a franchise. Are you ready to learn more about starting a mosquito control franchise? Schedule a call with us today.