*Funding for *Franchise/Startup

The difference between a startup and a franchise is like comparing apples and

oranges. A startup is still in the infant stage of testing and marketing. Whereas, a franchise is an advance-stage proven business-in-a-box model, ready to be scaled up.

A startup can be funded in stages as it developes with Angel Investors. Ai's generally use their own money, they understand the experimental nature of the idea/product, and they can sometimes decide in a single meeting whether or not to invest.

However, Venture Capitalists need to invest upwards of $3M at a time and very often, take too long to evaluate the risks involved and whether or not they will fund the project. Typically, a VC steps in for the the latter stages of the project to fund the building of the company as opposed to the product.

After the Startup or Franchise is up and running, additional direct lender funding options become available to the business owner.

Merchant Cash Advance (MCA)

A merchant cash advance is not a loan but an unsecure fast-cash advance based on the monthly credit card sales of a business. Unlike traditional bank options, MCA's through our direct lender only requires three documents for fast approval with no restrictions on the use of funds. It's no wonder MCA's are taking the lead over traditional loans. This popular funding option does NOT rely on your credit score or bad history but on your business reputation. With business-friendly common-sense terms, more and more business owners are flocking to MCA's as their capital source for business growth.

Lines of Credit and Loans:

A business line of credit is somewhat of a hybrid of credit cards and loans. A line of credit is an open-ended, revolving loan in which you can continuously borrow up to a certain amount, pay it off and borrow again. The periodic interest rate fluctuates on the amount you use, not the entire credit limit as with a personal loan.

There are two types of loans: secured and unsecured. Most often, the credit limit is higher and the interest rate is lower. However, don't expect fast approval for either a line of credit or a loan as both require good credit and a stack of financials as far back as five years, depending on the amount you're borrowing.

Whereas, today's financial market offers a wider variety of high-risk credit cards which includes: a lower credit limit at a higher percentage rate but qualifying is easier. Plus, with regular purchase and pay-off, you can quickly improve your credit score and qualify for capital at a better rate.

Commercial Credit Card for Employees: This credit card is an employer issued credit card for some/all their employees to make purchases on behalf of their company in a single account. Retail partnerships such as: office and building material stores, gas companies and bulk food markets, allow companies to earn rewards and discounts with co-branded cc for purchases at the co-branded company.

Some banking institutions may require employee/users of a company to apply for the company cc using their own Social Security number and credit history, which could result in a hard credit inquiry that temporarily lowers the employee/user’s credit score.

The financial market today offers a wide variety of higher risk credit card terms which includes: a lower credit limit at a higher percentage rate but qualifying is easier. Plus, with regular purchase and pay-off, you can quickly improve your credit score and qualify for capital at a better rate.