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 5 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 | 5.0/5 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 | Read Review |
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 |
TAB Bank - Term loan | Best for Franchise bank loans | $300,000 | 660 |
Here are 5 franchise loan options
Best for Franchise SBA loans
Best for Online loans for established franchises
Best for Franchise startup loans
Best for Franchise loans for bad credit
Best for Franchise bank loans
Max Amount
$300,000
Min. Credit Score
660
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. To qualify, your franchise must be listed in the SBA Franchise Directory.
SBA 7(a) loan
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
Our pick for
Online loans for established franchises
Funding Circle offers business term loans of up to $500,000 with repayment terms of up to seven years. 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
Max loan
$500,000
Min. Credit score
660
Apr range
15.22-45.00%
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
10.10-79.80%
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, business renovations or other similar franchise expenses.
OnDeck - Online term loan
Max loan
$250,000
Min. Credit score
625
Apr range
35.40-99.90%
Our pick for
Franchise bank loans
TAB Bank offers business term loans up to $200,000 with terms from 12 to 60 months. These loans can be a good option for established franchises with strong credit — and can sometimes fund faster than an SBA loan.
TAB Bank - Term loan
Max loan
$300,000
Min. Credit score
660
Apr range
8.99-35.99%
What is franchise financing?
Franchise financing options
Conventional bank loans
SBA loans
Online loans
Franchisor financing
Personal resources
- Rollovers as Business Startups, or ROBS. Some franchisees use a ROBS, which involves withdrawing money from your 401(k) or other retirement account — often with the help of a lawyer or ROBS provider — to invest in your new business. ROBS can be risky and may require substantial fees, so you’ll want to think carefully before choosing this option.
- Friends and family. If you have a friend or family member who has the means to invest in your business, you might ask for a loan to help get your franchise off the ground. Provided someone is willing to offer you a loan, you should draft up a loan document that specifies the details and terms of the financing in order to separate your personal relationship from your business deal.
How to get a franchise loan
1. Decide which type of financing you need
2. Check your business’s qualifications
3. Research and compare lenders
4. Submit your application
- Basic information about you and your business.
- Details about your franchise, such as your franchise agreement.
- Personal and business bank statements.
- Personal and business tax returns.
- Business financial statements.
- Collateral information, if required.
Find the right business loan
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.