What Are the Funding Options for Our Property Management Franchise Cost?
Small business ownership requires a financial investment. An iTrip® franchise opportunity is no different. The good news is our property management franchise cost includes everything you need to get started and can be financed in a number of ways. Keep reading to learn about these options and what iTrip’s franchise financing may require.
Small Business Association (SBA) loans are one of the most popular ways entrepreneurs finance their dreams of business ownership. They are backed by the government, which means it’s easier for applicants to qualify. Additionally, they come with lower interest rates and can be combined with other sources of financing. Depending on the kind of SBA loan you apply for, they may require minimal documentation and can also be closed quickly.
In order to be considered, one must demonstrate certain financial qualifications, including:
- A 690+ credit score
- 10% equity injection
- A history of no bankruptcies
Portfolio loans are another way to finance the purchase of your iTrip franchise. These loans use personal assets as collateral, resources such as investment or retirement funds in stocks, bonds, or cash. They’re especially beneficial because these loans allow you to leverage these resources without having to liquidate them. Small business owners can usually borrow up to 80% of their portfolio amount and gain access to a revolving line of credit. Additionally, portfolio loans have the potential of closing in just 10 days and feature low-interest rates.
However, as with SBA loans, applicants of portfolio loans must exhibit certain qualifications, including a minimum of $85K in brokerage accounts and securities publicly trading at $10 a share or higher.
Home Equity Lines of Credit
Home equity lines of credit, or HELOC loans, are a way for borrowers to tap into their home equity. These loans offer a fixed amount that is accessible as a revolving line of credit — sums are used on an as-needed basis with an interest-only payment each month. HELOC loans use your property as security and often have a lower interest rate than other common types of loans. Best of all, the interest may be tax deductible. They have a window of use, often 10 years, at which time the line will close and the borrower will begin paying on the remaining principal.
Franchise financing can be accomplished in many ways, including those we just outlined. The iTrip franchise cost includes everything you need to get started and grants you immediate access to a time-tested business model, training and support, industry expertise, marketing, and other operational tools.
The short-term rental industry needs caring and professional managers. To find out more about becoming an iTrip property management franchisee, get in touch today!