How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 7 franchise loan options
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for Franchise SBA loans | $5,000,000 | 650 | with Fundera by NerdWallet |
Funding Circle - Online term loan with Fundera by NerdWallet | 4.5/5 Best for Online loans for established franchises | $500,000 | 660 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for Franchise startup loans | $150,000 | 600 | |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Franchise loans for bad credit | $250,000 | 625 | with Fundera by NerdWallet |
National Funding - Equipment Financing with Fundera by NerdWallet | 4.5/5 Best for Franchise equipment loans | $150,000 | 600 | with Fundera by NerdWallet |
Bank of America - Franchise Financing | Best for Franchise bank loans | Undisclosed | 700 | |
SBA CDC/504 loan | Best for Franchise SBA real estate and equipment loans | $5,000,000 | 680 | |
Here are 7 franchise loan options
Best for Franchise SBA loans
Best for Online loans for established franchises
Best for Franchise startup loans
Max Amount
$150,000
Min. Credit Score
600
Best for Franchise loans for bad credit
Best for Franchise equipment loans
Best for Franchise bank loans
Max Amount
Undisclosed
Min. Credit Score
700
Best for Franchise SBA real estate and equipment loans
Max Amount
$5,000,000
Min. Credit Score
680
I'M INTERESTED IN:
Our pick for
Franchise SBA loans
SBA 7(a) loans offer competitive interest rates and repayment terms, with loan amounts up to $5 million. Franchisees can use SBA 7(a) loans for a wide variety of purposes.
SBA 7(a) loan
with Fundera by NerdWallet
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
with Fundera by NerdWallet
Our pick for
Online loans for established franchises
Funding Circle offers term loans of up to $500,000. To qualify, you’ll need at least two years in business and a minimum credit score of 660. If approved, you can get franchise funding in as little as three days.
Funding Circle - Online term loan
with Fundera by NerdWallet
Max loan
$500,000
Min. Credit score
660
Apr range
15.22-45.00%
with Fundera by NerdWallet
Our pick for
Franchise startup loans
Fundbox can provide business lines of credit to franchises that have been operating for at least six months. These lines of credit are available in amounts up to $150,000 and can be used for working capital, making payroll and purchasing inventory or supplies, among other purposes.
Fundbox - Line of credit
Max loan
$150,000
Min. Credit score
600
Apr range
36.00-99.00%
Our pick for
Franchise loans for bad credit
You may be able to qualify for franchise financing from OnDeck with a minimum credit score of 625. OnDeck offers short-term loans up to $250,000 that can be well suited for one-time projects, such as marketing campaigns, inventory purchases or business renovations.
OnDeck - Online term loan
with Fundera by NerdWallet
Max loan
$250,000
Min. Credit score
625
Apr range
27.20-99.90%
with Fundera by NerdWallet
Our pick for
Franchise equipment loans
If you’ve been in operation for a minimum of six months and have a credit score of at least 600, National Funding offers financing up to $150,000 for new and pre-owned equipment.
National Funding - Equipment Financing
with Fundera by NerdWallet
Max loan
$150,000
Min. Credit score
600
with Fundera by NerdWallet
Our pick for
Franchise bank loans
You may be able to qualify for franchise financing, including SBA loans, from Bank of America if you’ve been in business for at least two years and generate annual revenues of $250,000 or more.
Bank of America - Franchise Financing
Max loan
Undisclosed
Min. Credit score
700
Our pick for
Franchise SBA real estate and equipment loans
SBA 504 loans offer long-term, fixed rate financing. These loans can be used to buy existing buildings, fund new locations or purchase equipment for a franchise or other type of business.
SBA CDC/504 loan
Max loan
$5,000,000
Min. Credit score
680
Apr range
5.00-7.00%
What is franchise financing?
Franchise financing options
Bank loans
SBA loans
Online loans
Franchisor financing
Personal loans and HELOCs
Rollovers as Business Startups (ROBS)
Friends and family loans
How to get a franchise loan
1. Create a business plan
2. Decide which type of financing you need
3. Check your business’s qualifications
4. Look for ways to strengthen your borrower profile
5. Research and compare lenders
6. Submit your application
- Basic information about you and your business.
- Details about your franchise, such as your franchise agreement.
- A business plan.
- Personal and business bank statements.
- Personal and business tax returns.
- Business financial statements.
- Collateral information, if required.
Find the right business loan
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.