Bad credit makes it more difficult, but not impossible, to qualify for a franchise financing. If you have a history of bankruptcies as well as several judgements and tax liens against you, your prospects of obtaining a loan from a financial institution are little to none. If, on the other hand, you’ve had a few financial failures in the past and your credit isn’t perfect, don’t lose hope—you could still be able to get a franchise loan. Let’s take a look at what you have to work with.
To begin with, even if you have great credit, getting a bank loan for a new franchise firm is challenging. Prospective borrowers are often assessed by banks and other lenders using the following criteria:
- What is the amount of money that the borrower must put into the business?
- To secure the loan, how much collateral does the borrower have?
- What kind of credit history does the borrower have?