FranFund

17 01, 2020

FranFund’s Shay Mora Receives Coleman’s 2019 Emerging SBA Lender of the Year Award

2020-01-17T12:34:19-05:00January 17th, 2020|Tags: , , , , |

Shay Mora, VP of Lending Operations for FranFund Receives Award.

FORT WORTH, Texas — FranFund is proud to announce that Shay Mora is a recipient of Coleman Report’s 2019 Emerging SBA Lender of the Year (Under 40) award. As VP of Lending Operations at FranFund, Mora’s expertise in business lending has been instrumental in the continuous growth of the company. She has helped establish FranFund as a key player in the franchise and small business funding industry, demonstrated by the recent recognition as the #1 funding provider in Entrepreneur Magazine’s 2019 “Best in Service” ranking of franchise industry suppliers.

“I am honored to receive this distinguished award, especially for doing something so fulfilling – helping people realize their dreams of business ownership,” said Mora.

Mora has helped thousands of clients all across the United States start or grow their businesses. “We celebrated opening day last week for our store, and we now have a business that serves five communities and provides jobs for local residents,” said Tracey Carothers, Big Frog Franchisee. “This would not have been possible without the help of Shay and her team at FranFund, who helped us get the funding we needed.”

Mora will be honored later this spring at a dinner hosted by Coleman Report recognizing top lending partners.

About Coleman Report
Coleman is the leading provider of information to small business bankers to help them make less risky small business loans. It is the largest producer of training courses and webinars for small business bankers. Coleman provides data about small business loan performance to lenders. Its premium content trade newsletter, The Coleman Report, began in 1993 and provides critical analytical information for today’s small business lending professional.

About FranFund, Inc.

A member of the International Franchise Association Supplier Forum, FranFund, Inc. designs smart all-in-one funding plans that grow with franchise businesses. Founded by a veteran in the franchise industry with first-hand experience as a franchise owner, franchise developer, and new franchise creator, FranFund specializes in funding solutions for franchisees. By utilizing a franchise-specific pre-qualification tool and cultivating an extensive network of lenders who are franchise and small business friendly, clients pre-approved by FranFund have a loan approval rate of 99%. FranFund takes a consultative approach, providing clients a personalized experience that helps them gain the confidence to move forward with a funding solution that makes the most sense for them. For more information, visit www.franfund.com

1 01, 2020

Finance: Can I Use My 401(k) to Start a Business?

2020-01-02T10:31:34-05:00January 1st, 2020|Tags: , , , , , |

Finance graphic

If you’ve asked yourself this question, you are not alone, and depending on your circumstances,
it could be an option worth strong consideration. Using your retirement funds could be a great way to help you start your business debt-free. By Sherri Seiber

(more…)

13 11, 2019

FranFund’s Geoff Seiber Honored with Companion Medal for American Free Enterprise Day Ceremony, November 14th

2019-11-13T11:48:44-05:00November 13th, 2019|Tags: , , , , |

Recognition for Funding Solutions that are Stimulating the Business Community

FORT WORTH, Texas — The American Free Enterprise Day Companion medal is an annual tradition at Palm Beach Atlantic University. The University has hosted American Free Enterprise Day since 1984. The celebration honors individuals whose hard work and achievements exemplify the best of the American free enterprise system.

On Thursday, November 14th, Geoff Seiber, Founder and CEO of FranFund, along with three other notable business leaders, Robert W. “Chip” Lafferty, Beth Neuhoff, and Carlos Vidueira, will be honored with companion medals.

Seiber’s leadership within the business community has been quite impactful. His efforts to streamline funding solutions and expand access to capital in the franchise industry have helped the dreams of countless franchisees and small business owners come true.

FranFund was recently recognized as the #1 funding provider in Entrepreneur Magazine’s 2019 “Best in Service” ranking of franchise industry suppliers. This recognition was voted on by hundreds of franchisors who know the importance of working with the right funding partner. Seiber knows first-hand the challenges behind starting and operating a franchise and together with the FranFund team, he created a funding experience that business owners are consistently satisfied with.

“Obtaining funding for any business can be very difficult. Knowing that we help overcome financial obstacles as people take steps toward owning their first or fifth business is rewarding,” said Geoff Seiber.

Seiber serves on the Titus Center for Franchising Advisory Board, the IFA Supplier Board, and the IFA VetFran committee. He is a regular speaker at franchise industry events around the nation. He takes pride in his Fort Worth community, where he serves on the Chamber of Commerce Advisory Board and as vice chairman of the Frog Club Board for Texas Christian University. He also supports the Armed Forces Bowl annually through ESPN.

The medal ceremony is at 10:30 a.m. in the Rubin Arena of the Green Complex for Sports and Recreation, 1100 S. Dixie Highway. It is free and open to the public. For more information, call (561) 803-2025.

About FranFund, Inc.
A member of the International Franchise Association Supplier Forum, FranFund, Inc. designs smart all-in-one funding plans that grow with franchise businesses. Founded by a veteran in the franchise industry with first-hand experience as a franchise owner, franchise developer, and new franchise creator, FranFund specializes in funding solutions for franchisees. By utilizing a franchise-specific pre-qualification tool and cultivating an extensive network of lenders who are franchise and small business friendly, clients pre-approved by FranFund have a loan approval rate of 99%. FranFund takes a consultative approach, providing clients a personalized experience that helps them gain the confidence to move forward with a funding solution that makes the most sense for them. For more information, visit www.franfund.com

2 05, 2019

Bank on It!

2019-05-03T15:10:28-04:00May 2nd, 2019|Tags: , , , , , |

Bank on It!

Find help landing your SBA loan

by Shay Mora

Even a low-cost franchise can require $100,000 to get up and running, and some need considerably more. Entrepreneurs often must line up financing for their start-ups or other major expenses. Many of them seek Small Business Administration loans but find the process challenging.

One source for assistance is FranFund, which has used its portfolio of top SBA lenders and SBA Express/7(a) Small Loan programs to help hundreds of new and existing franchisees receive funding. These loans are ideal for service-based businesses requiring $150,000 or less for a start-up, expansion, or working capital loan; some lenders go as high as $350,000.

Although the fast-tracking of SBA Express attracts many borrowers, the specifics of these loans often create confusion over eligibility, requirements, and terms. Following are answers to common questions about SBA Express/7(a) Small Loans.

Are all SBA Express Loans the same?
Yes. All SBA Express loans follow the same SBA rulebook regardless of lender. Many lenders advertise an SBA Express program, but most actually submit those loans as SBA 7(a) Small Loans to secure a larger SBA guaranty (up to 85% vs. 50% Express) as additional security because these typically don’t require personal collateral. Also, with the SBA guaranteeing 85% up to a loan amount of $150,000 and only 75% for loans from $150,000 to $350,000, many banks cap their programs at $150,000.

Where can I get an SBA Express/7(a) Small Loan?
Banks can be selective about the industries they work with, number of startups they lend to, and kinds of business costs they cover. Because it is challenging for borrowers to find a bank that is a good fit for their specific franchise, it’s wise to work with a lending consultant such as FranFund, which specializes in SBA loans and can match franchisees with the right lender.

Can I receive an SBA Express/7(a) Small Loan if I have bad credit?
Banks look at business owners’ personal credit score (FICO) and small business credit score (SBSS). If your personal credit score is below 680, you’ll need a good explanation and good liquidity/income. The SBSS scores a small business by its likelihood of making payments on time. You’ll need an SBSS score of 165+. A past bankruptcy, short sale, or judgment is not an automatic disqualifier as long as it is at least 3 years old and you’ve re-established clean credit (680-plus). You must not have any open collections, past-due student loans, unpaid child support, or tax liens.

Is a cash injection required?
If you have a business that has operated longer than two years and is successful, then a cash injection typically isn’t required. For start-ups, you can expect to contribute 10% to 20% of personal funds, meaning you can’t use borrowed funds such as a home equity line of credit or personal loan. Funds from a 401(k) or IRA rollover can satisfy this requirement, however.

How is the loan secured?
A lien on your business assets secures the loan. No personal collateral is needed, but a personal guaranty (an individual’s legal promise to repay the debt) is required from each owner with 20% or more ownership of the business as well as spouses, if their assets and/or income will be used to qualify.

What’s needed to close the loan?
The business should be within 60 days from generating revenue, which means these items need to be complete:

  • Training certificate (required by some lenders).
  • Business insurance.
  • Signed franchise agreement and SBA franchise addendum.
  • Signed lease agreement (if applicable) and the bank’s landlord consent waiver.
  • Business licenses/permits required by state and county.
  • Proof of equity injection (down payment).
  • Additional requirements if the business has a build-out.

How soon will I receive funds?
Funding can occur five to 10 days after all closing requirements above are completed. This allows time for SBA document completion, bank review and approval, and final signatures on the closing documents.

FranFund helps franchisees put the right funding strategy in place as a framework for long-term success. With ex-bankers on its team, quick preapprovals, and a 99% loan approval rate, FranFund makes the lending process as painless as possible.

Want to learn more about SBA loans and other financing options? FranFund designs all-in-one funding plans that grow with your franchise and set you up for long-term success. Whether you are considering leaving your current job to start a new venture or if you want to expand your existing operation, we are here to help. Get started today at bit.ly/frandfund-fd or email info@franfund.com.