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SBA Franchise Loans Explained

SBA Franchise Loans Explained

If you’re looking to start a business or expand an existing one, then you may have heard of SBA franchise loans and wondered what they are. These loans offer the potential for low-cost access to capital that can help get your startup off the ground or support growth.

What is an SBA Franchise Loan?

SBA franchise loans are a type of financing offered by the Small Business Administration (SBA) to help entrepreneurs start or expand their businesses. The SBA works with lenders to provide these low-cost loans that have longer repayment terms and lower interest rates than traditional bank loans. These loans can be used for a variety of purposes, including purchasing a franchise, buying real estate, purchasing equipment or inventory, and even working capital.

Qualifying For an SBA Franchise Loan

To qualify for an SBA franchise loan, you must meet certain criteria. You’ll need to have a good credit score and a strong business plan. Additionally, you may need to provide collateral such as your home or other personal assets to secure the loan. The amount of money you’re eligible for may also depend on the size and type of your business.

Compare Terms and Rates

When it comes time to apply for an SBA franchise loan, it’s important to do your research and compare offers from different lenders to find the best deal. Make sure you understand all the terms and conditions of the loan before signing anything, as it’s a legally binding agreement. Additionally, you should make sure to read the fine print when it comes to fees associated with the.

If you think an SBA franchise loan could be right for your business venture, contact the experts at Kenbry Capital today. We offer franchise financing for everything from acquisitions to working capital, equipment, and more.

A Beginners Guide to Flipping Houses

A Beginners Guide to Flipping Houses

Flipping houses has become a lucrative business for many aspiring entrepreneurs. By purchasing and renovating properties, then selling them at a profit, it’s possible to build wealth quickly and gain financial freedom in the process. If you’re new to flipping houses, however, getting started can be intimidating – but it doesn’t have to be! With the right knowledge and resources, anyone can learn how to flip houses with minimal risk and maximize their potential profits.

Research the Local Real Estate Market

First, you need to understand the local real estate market. Researching the type of housing in your area, median home prices, and trends in demand will give you an idea of where to find properties that have the most profit potential. A great place to start is by looking at bank-owned homes or foreclosures – these can often be purchased for a discounted price and can provide an easy way to get started in house flipping.

Secure Funding

Next, you’ll need to find reliable financing for your project. Most banks are wary of financing flippers due to the risky nature of the business, but there are still options available. Look for hard money lenders who specialize in providing financing for fix-and-flip projects. Make sure to shop around and negotiate the best terms possible – this will give you the financial support that you need to get started.


Finally, it’s time to start renovating! This is where your creativity comes in – make sure to create a design plan before beginning any renovations, and use quality materials to ensure that the property is ready for sale. Hiring a professional contractor or team of tradespeople is also recommended – not only will this help speed up the process, but it can also save time and money in the long run.

Flipping houses can be a daunting endeavor, but with these tips, you’ll be on your way to becoming a successful house flipper. Keep learning, stay organized, and don’t be afraid to take risks – you’ll soon reap the rewards of your hard work. Contact Kenbry Capital today to get the capital you need for your next fix and flip project.

The Pros and Cons of SBA Loans Explained

The Pros and Cons of SBA Loans Explained

Small business owners have the option to choose from a variety of loan options to fund their business venture. One popular choice is an SBA loan or Small Business Administration loan. There are two types of SBA loans: 7(a) and 504 loans. Business owners need to understand the differences between these two loans so they can make an informed decision about which one is right for their business needs.

SBA 7(a) Loan Overview

An SBA 7(a) loan provides businesses up to $5 million in capital and requires collateral and a personal guarantee from the borrower, but no down payment is necessary. This type of loan has flexible terms and can be used for almost any purpose, including purchasing real estate or equipment, refinancing existing debt, or funding other operational expenses. The interest rate on this loan may be fixed or variable depending on the length of the repayment period, which can range from five to 25 years. This type of loan requires some paperwork and can take some time to get approved, so plan accordingly if you need quick capital.

SBA 504 Loan Overview

An SBA 504 loan offers up to $5 million with no collateral required or personal guarantee from the borrower (even though it does require a down payment). This type of loan is typically used for long-term investments such as real estate or equipment purchases that will help your business grow over time. The interest rate on this loan is fixed with repayment periods ranging from 10-20 years depending on how long you need it. A bonus with this type of loan is that it generally takes less time than a 7(a) loan to get approved since there’s less paperwork involved.

Business owners should consider both types of SBA loans when deciding which one best suits their needs. While both offer up to $5 million in the capital, the differences in terms and requirements make them more suitable for different scenarios – such as short-term vs long-term investments – so be sure to research each option before committing your funds! Ultimately, understanding the pros and cons of each type of SBA loan will help you make an informed decision about which one is right for your business situation.

The Difference Between an SBA 504 vs 7a Loan

The Difference Between an SBA 504 vs 7a Loan

If you’re a small business owner, you know that having access to capital is essential for the success of your business. For many entrepreneurs, Small Business Administration (SBA) loans are a great option for financing their businesses. But which SBA loan program is right for you? Let’s take a look at two of the most popular options: the SBA 7(a) and 504 loan programs.

SBA 7(a) Loan Program

The SBA 7(a) loan program is designed to provide small businesses with access to long-term, low-interest-rate financing. This type of loan can be used for almost any type of business purpose including working capital, equipment purchases, debt refinancing, and more. The maximum amount that can be borrowed through an SBA 7(a) loan is $5 million and repayment terms can range from 10 to 25 years depending on the amount borrowed and the purpose of the loan.

SBA 504 Loan Program

The SBA 504 loan program provides long-term fixed-rate financing for major assets such as real estate or equipment. This type of loan can also be used to finance some types of construction projects. Unlike the 7(a) loan program, the maximum amount that can be borrowed through a 504 loan is $20 million and repayment terms are usually 20 years or less depending on the purpose of the loan.                                                                                              

Both types of loans offer attractive terms and interest rates but have some key differences that should be considered when choosing between them. The 7(a) is better suited for shorter-term financing needs while the 504 is best used for long-term asset purchases such as real estate or heavy machinery. Additionally, since the maximum amount allowed under an SBA 504 is much higher than under a 7(a), it may be more appropriate for larger projects or expansions that require larger amounts of capital than what a 7(a) would allow.                                                                                                            

When it comes to accessing capital for your business, both an SBA 7(a) and 504 Loan can be great options depending on your situation and needs. Do your research so you can choose which one makes more sense in your specific case. It’s essential to understand how each works so you can make sure you get exactly what you need to grow your business successfully! Knowing all your options will help ensure that you make an informed decision about which type of funding will work best for your unique situation in the future!

Secured vs. Unsecured Lines of Credit: What Business Owners Need to Know

Secured vs. Unsecured Lines of Credit: What Business Owners Need to Know

When business owners are looking for extra capital to finance their operations, they often turn to a line of credit as a source of funds. But what is the difference between secured and unsecured lines of credit? Understanding the differences between these two types of financing can help business owners make informed decisions about which type of line of credit is best for them.

The Basics of Credit Lines

A line of credit is an agreement with a lender that allows you to borrow money up to a certain limit, pay it back over time, and then borrow again if needed. It’s like having your loaner—as long as you continue making payments on time, the money will always be available for use whenever you need it. It’s important to remember that even though a line of credit may be available when needed, only borrow what you can afford to pay back promptly.

Secured vs Unsecured Lines of Credit

The main difference between secured and unsecured lines of credit lies in the collateral required by each type. A secured line of credit requires some form of collateral—usually property or assets owned by the borrower—to secure the loan agreement. If the borrower defaults on their payments, the lender can seize this collateral as repayment for the debt owed. An unsecured line of credit does not require any collateral; instead, lenders rely on the borrower’s past financial history and potential future earnings as assurance that they will repay their debt.

Benefits and Drawbacks

Secured lines of credit have lower interest rates than unsecured lines because they are less risky for lenders; however, borrowers must be willing to risk using their property or assets as collateral. Unsecured lines typically have higher interest rates but do not require any collateral from borrowers; however, lenders are taking more risks when offering these loans so approval can be difficult for those with poor or limited financial histories. Both options come with advantages and disadvantages that should be carefully weighed before deciding which type is best suited for your business needs. 

Deciding between secured and unsecured lines of credit depends largely on your unique situation and individual needs as a business owner. Knowing how each type works and understanding its benefits and drawbacks can help you decide which option is best suited for your business’s current financial situation—allowing you access to capital while protecting yourself from unnecessary risk or high-interest rates in the future. With careful consideration, business owners should have no problem finding an appropriate solution that meets their needs while staying within budget.

Work with the financing professionals at Kenbry Capital to find a loan for your business. Our professionals can help tailor a solution that will allow you to continue to meet your business needs with minimal disruption. We have a large portfolio of business loans for all your needs.

How to Secure Financing for Your Big Projects

How to Secure Financing for Your Big Projects

If you’re a business owner, you know how difficult it can be to secure the financing needed to complete large projects. It’s not easy to find money when you need it, especially when there are so many options out there. Fortunately, there are options available for businesses of all sizes that can help secure the funds they need for their projects. Let’s take a look at some of these options.

Investment Loans for Businesses

Investment loans are among the most popular methods of financing big projects. Investment loans allow businesses to borrow money from investors and use it towards their projects while paying back the loan with interest over time. This type of loan is typically used by start-ups and small businesses that need funds quickly and don’t have access to traditional bank loans or other forms of financing.

JV Equity or Debt Programs

Another option for securing financing for large projects is through joint venture (JV) equity or debt programs. JV equity programs involve two or more parties investing in a project together and sharing the profits as well as any losses associated with the project. JV debt programs work similarly but involve borrowing money from investors instead of investing in the project together. Both types of programs can be beneficial for businesses that need access to additional capital but don’t want to take on too much risk or burden themselves with long-term debt obligations.

Angel Investing

Finally, angel investing is another option that businesses may consider when looking for funding for large projects. Angel investors are individuals who provide capital investments into start-up companies in exchange for an ownership stake in the company. Angel investors often provide necessary funding at critical times that can help a business get off the ground and succeed in its endeavors. It’s important to note, however, that angel investors usually only invest in companies they believe in and have confidence in their success so they may not be interested in every business proposal they receive.

Securing financing for large projects isn’t always easy but there are plenty of options available that can help make it easier. Investment loans, JV equity/debt programs, and angel investing are just ways businesses can acquire the funds they need for their big plans and make them a reality! With careful research and analysis, any business owner can determine which method best suits their needs – ultimately leading them down a successful path towards completing their project goals!

At Kenbry Capital, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.

Getting an SBA Loan for a Franchise: What You Need to Know

Getting an SBA Loan for a Franchise: What You Need to Know

If you’re interested in buying an existing business or franchise, you may be wondering how to get an SBA loan. The Small Business Administration (SBA) is the go-to source for business loans, especially when it comes to franchises. But how do you qualify? And what do you need to know before applying? Let’s take a closer look at the process of getting an SBA loan for a franchise.

Types of SBA Loans

The Small Business Administration offers several types of loans that are specifically designed for small businesses and franchises. These include the 7(a) Loan Program, the 504 Loan Program, and the Microloan Program. Each program offers different terms depending on your financial needs and credit score.

Qualifying for an SBA Loan

To qualify for an SBA loan, you must meet certain criteria. You must have good credit and have been in business for at least two years (or in some cases three). Additionally, you must have a solid business plan including market research so lenders can see your potential growth over time. Finally, you should have strong management experience as well as sufficient collateral to secure the loan if necessary.

How To Apply For An SBA Loan

If you believe you meet all the abovementioned qualifications, it’s time to start applying! The first step is to fill out an application with the Small Business Administration (SBA). This application will ask questions about your business plan and goals as well as any collateral that you may be able to offer up in exchange for the loan. Once your application has been submitted and approved by the SBA, then it’s time to apply with a bank or other lender that is approved by the SBA. This is where things can get complicated; banks don’t always make it easy to secure a loan even if your business meets all their requirements. So, make sure to do your research beforehand!        

Applying for an SBA loan can be a long and complicated process but ultimately rewarding if done right. With patience and due diligence, those looking into buying an existing business or franchise can use this type of loan to jumpstart their venture without having too much financial strain upfront. Before beginning this process though, make sure that you understand all of the requirements associated with getting an SBA loan so that there are no surprises down the line!

Financing Working Capital Solutions for Your Business

Financing Working Capital Solutions for Your Business

Managing cash flow and working capital can be a challenge for any business, no matter the size. But there are financing options available that can help. In this blog post, we’ll explore three types of financing solutions to help you manage your working capital needs.

Line of Credit

A line of credit is a loan in which the lender agrees not to demand repayment until the borrower has used up all or part of the total amount. While lines of credit offer flexibility and convenience, it’s important to remember that they are still loans, so interest will accrue over time and must be paid back in full when repayment is due.

Invoice Financing

Invoice financing is another option for businesses looking to manage their working capital needs. Invoice financing allows businesses to borrow against unpaid invoices from customers. The amount borrowed is typically a percentage of the total value of the invoice, with interest accruing on that amount until it’s paid off in full. This type of financing offers businesses quick access to cash without having to wait on customers to pay their invoices.

 Merchant Cash Advances

Merchant cash advances provide businesses with an advance on future sales revenue, usually in exchange for a percentage fee based on what’s borrowed. Merchant cash advances are often more flexible than other forms of financing because they don’t require collateral or a personal guarantee from the borrower. However, their high-interest rates and fees can also be more expensive.

Financial challenges come with running any business—but with these three potential financing solutions, you have options available if you’re looking for ways to manage your working capital needs. Remember that each option comes with its pros and cons, so it’s essential to do your research before deciding which one makes sense for your business’s particular needs. With careful consideration and analysis, you’ll be well-equipped to determine how best to finance your business’s working capital needs.

A Guide to Investing in Short-Term Rentals

A Guide to Investing in Short-Term Rentals

The short-term rental market is booming and for good reason. People are increasingly choosing the convenience and flexibility of renting an apartment or house for a few days rather than committing to a long-term lease. As a business owner, you can take advantage of this trend by investing in a short-term rental property. This guide will provide an overview of the key considerations when investing in a short-term rental investment.

Location Matters

The first step when investing in a short-term rental is to select an ideal location. Location matters for two reasons. First, it affects how likely your property is to attract renters. Second, it influences your potential profit margins since local regulations vary from city to city. For example, if you’re looking at properties in San Francisco, you’ll need to be aware of their strict regulations regarding short-term rentals before making any decisions.

Research Demand

Once you’ve identified the right location for your investment, it’s time to research the demand for short-term rentals in that area. You should look at both current and historical trends when researching demand – what’s popular now may not be as popular down the line! Additionally, look into seasonal trends; certain areas might see more need during certain times of the year due to events or attractions, which could affect occupancy rates and profits.

Understand Your Expenses

It’s also important to understand all the expenses associated with owning a short-term rental property to accurately calculate your expected return on investment (ROI). Property taxes and maintenance costs are two primary factors that will impact your ROI and profitability; however, there may be additional costs such as insurance premiums depending on where you invest and what type of property you purchase. To get an accurate picture of your expected ROI, make sure that all associated expenses are considered when calculating projected profits from renting out your property.

Investing in a short-term rental can be a lucrative way for business owners to capitalize on changing consumer preferences while also diversifying their portfolios with real estate investments. To ensure success, it’s important to carefully select the right location based on local regulations and research demand trends before diving into any investment opportunities. Additionally, consider all associated costs including taxes, maintenance fees, insurance premiums—and more—so that you can accurately calculate expected returns before making any decisions about investing in a short-term rental property!

Let’s work toward finding you the right commercial finance solution for your growing business. Get in touch with a member of our team, who will schedule a time to meet so we can learn more about your goals and the specifics of your financing request. Together, we’ll come up with a financing solution that helps your business.

A Comprehensive Guide to Mezzanine Financing

A Comprehensive Guide to Mezzanine Financing

Business owners have a variety of financing options available to them, and one of the most popular is mezzanine financing. In this blog post, we’ll take an in-depth look at what mezzanine financing is, how it works, and what its benefits are so that you can make an informed decision about whether it’s right for your business.

What Is Mezzanine Financing?

Mezzanine financing is a form of debt capital used by businesses to finance expansion projects or cover other capital expenditures. It can be used to purchase real estate, fund acquisitions, refinance existing debt, and more. The loan is typically secured by the company’s assets and generally carries a higher interest rate than traditional bank loans. It also has an equity component that gives the lender a stake in the company if certain conditions are not met.

Rate of Return on Mezzanine Financing

The rate of return on mezzanine financing varies depending on the type of loan and other factors such as the creditworthiness of the borrower and the amount borrowed. However, lenders expect to receive 10% – 15% returns. This makes mezzanine financing an attractive option for investors looking for higher returns than those available through traditional bank loans.

Benefits of Mezzanine Financing

Mezzanine financing offers numerous benefits to businesses seeking funds for expansion projects or other capital expenditures. The primary benefit is that it allows businesses to access funds quickly without going through lengthy and expensive processes associated with traditional bank loans. Additionally, mezzanine financing enables businesses to leverage their existing assets instead of selling them to raise capital. Lastly, it also provides investors with a higher return on their investment than they would receive with a traditional bank loan.                                                                                   

In conclusion, mezzanine financing is an attractive option for businesses looking for quick access to capital without using up their assets or going through lengthy approval processes associated with traditional bank loans. It also gives investors higher returns than they would receive from traditional bank loans while still maintaining some control over the business they are investing in. If you’re considering taking out mezzanine funding for your business, you must understand all aspects before making a final decision so that you can make sure it’s right for your unique situation.

Work with the financing professionals at Kenbry Capital to find a loan for your business. Our professionals can help tailor a solution that will allow you to continue to meet your business needs with minimal disruption. We have a large portfolio of business loans for all your needs.