20 Aug 2014

Positive lending patterns, in-house financing make it an ideal time to invest in a WIN Home Inspection franchise

At the WIN Home Inspection franchise, we know that getting a loan can be the most difficult part of starting a new business — especially for a first-time business owner. WIN’s low startup costs mean that many franchisees don’t need a loan, but there is good news for those who do: WIN has a long track record of offering in-house financing.

We know our WIN financing system works; it’s been successful for 20 years. We also know that bank lending became much more difficult after the Great Recession. That’s why we put our own money on the table to help people start their businesses. If you meet WIN’s credit standards, which include a credit score of at least 650, WIN may finance up to 50% of your franchise fee at an interest rate of 8% per year.

Positive trends for outside lending

There’s also very good news for franchise buyers looking for outside sources of startup capital. The franchise sector is experiencing significant growth in 2014. Lending institutions are making more deals to finance small businesses, and the gap between loan demand and loan supply has been narrowing.

According to Frandata, a national franchise information firm, demand for new and existing franchisees is expected to exceed 73,800 units — a 12.4% increase over 2013 and an 18.8% increase over 2012.

With a 31% growth rate from 2011 to 2013, the WIN Home Inspection franchise is doing even better. We have 182 franchises in 30 states and more units in development.
Opening the small business loan spigot

Simply stated, 2014 is a great year for franchising in general and for the WIN Home Inspection franchise specifically. There’s really never been a better time to explore franchising.

Industry experts say that franchises will need $29.4 billion in loans in 2014. Banks are expected to make $28.1 billion available, funding about 70,500 units. That’s a 4.4% gap — the smallest since the numbers have been tracked. In 2010, the gap was 16.6%.

Typically, lenders are more inclined to lend money to a startup franchise owner than to other new businesses. They don’t like throwing money at concepts that can’t show a record of performance. They are looking for good business success stories, the “dream come true” storylines that abound in the franchising world.

We hear that kind of success story every day at the WIN Home Inspection franchise.

Sources of startup capital at WIN

It’s common for new franchisees to use a patchwork of sources to achieve their financing goals — from self-financing and borrowing from family and friends to taking out bank loans. Many banks and credit unions offer financing for franchise purchasing. Keep in mind that franchises with strong brand names, such as the WIN Home Inspection franchise, typically have better track records of approval.

Here are some sources of capital for the new WIN Strategic-Partner.

Car leasing partnership with Bancorp: WIN Home Inspection franchise recently started an innovative — and generous — car leasing program in partnership with The Bancorp, a large national financial and commercial lending bank. With this offer, our Strategic-Partners can apply for a generous car leasing program that can significantly decrease the amount of upfront cash it takes to open a WIN Home Inspection franchise. This flexible funding option will have no mileage restriction or fees for wear and tear, and it may include no down payment to minimize your cash outlay at delivery.

Home-equity loans: If you own a home and it’s worth more than you paid, you can likely tap into your equity to secure a loan at a good interest rate.

401(k) and other retirement funds: It’s possible to use your retirement funds to start a business without incurring any penalties for early withdrawal. The key is to roll the money into a specific type of account that can be used to fund your business. We recommend consulting with an accountant, and we can also direct you to 401(k) loan providers.

SBA loans: SBA loans are available. SBA doesn’t lend to business owners directly; it provides a repayment guarantee to banks and lenders for money they lend to small businesses, making it less risky for the banks.

Bank loans through BoeFly: Even though traditional bank lending has gotten tougher to obtain, there are still banks ready to lend — it’s just a matter of helping you find them and helping them find you. To help make the connection, WIN Home Inspection has partnered with BoeFly.com, an online marketplace that matches loan applications against more than 3,600 lenders nationwide. Banks then compete to win your business.

Learn about starting a WIN home inspection franchise

The WIN Home Inspection franchise provides extensive training to help Strategic-Partners understand the technical skills needed to be great home inspectors. Many consider WIN to be one of the best home inspection franchise opportunities on the market.