An Overview of Veteran Franchise Financing Options | VetCor

One of the most important elements of your search for the perfect franchise is determining how much you are able to invest as a franchisee. Thankfully, veterans hoping to own their own franchise have a variety of options for funding that can get them started on the right path to franchise ownership while still remaining financially stable.

The most common types of loans that veteran franchisees pursue are traditional Small Business Administration (SBA) loans, SBA-funded Patriot Express Loans and conventional bank loans.

Oftentimes, franchise owners will use a combination of personal savings and loans to fund their franchise purchase, but it is important to evaluate your options and make the best decision for your situation. That is why we have outlined some options below so you can learn more about the funding options that are out there.

Financing Options for Veteran Franchisees

SBA Loan
An SBA loan is one of the most common loans that potential franchise owners seek out because of the security and peace of mind they offer. Because they are federally guaranteed, they can offer some of the lowest interest rates on the market as well as flexible repayment terms. They do have fairly stringent qualifying terms for business owners to be eligible, but if you have the credit history to qualify, they are a fantastic source to pursue.

Patriot Express Loan
While similar in nature to the SBA loan, a Patriot Express Loan is a more streamlined model that is tailored to veteran recipients. It offers the fastest turnaround time of any funding provided by the SBA, the lowest interest rates possible—and it can be used for a variety of expenses that relate to your franchise. It is available for veterans, active-duty military undergoing training in the Transition Assistance Program, National Guard and Reserve members, as well as current and widowed military spouses.

Conventional Bank Loans
A conventional bank loan is another option for franchise owners to pursue, and are often easier to qualify for than an SBA-funded program. The downside of conventional bank loans is that they are often offered at a higher interest rate with stricter repayment plans than a business-specific loan, but they can still be a fantastic option to cover some or all of your franchise startup expenses.

Are you ready to learn more about opening a VetCor franchise? Get in touch with us to learn all about how we help veterans succeed!