Diamond Financial will initially pre-qualify someone and discuss their loan potential. Our service will then provide complete loan packaging and presentation to our network of aggressive business and franchise lenders. We simplify the entire loan process, maximize the chances of approval, get better loan terms, and make sure someone's loan is with the right type of lender. We mainly work with SBA (Small Business Administration) lenders with a high success rate.
Why should someone use Diamond Financial for franchise financing instead of their local bank?
Most direct lenders (including local banks) are not aggressive in franchise lending. Diamond Financial Services, specialists in franchise financing nationwide, will maximize someone's chance of loan approval. Most loans (over 84%) get declined because the loan is not packaged up completely or correctly or the loan is not sent to the right type of lender. Diamond Financial is not a direct lender. We consult (and broker) the loan via the SBA (Small Business Administration), which is the most popular and common loan program in the country. We have a network of over 20 lenders nationally, and will be able to get our borrower better loan terms, as well as make the whole loan process faster and easier, and put someone in a better position for future expansion.
What loan programs do you offer for individuals looking to buy a franchise?
Diamond financial offers SBA 7(A) loans from $100K to 2 million for start-up businesses, expansion, acquisitions (resales), refinance and partner buy-outs. We also offer equipment leasing from $10K - 100K. We offer a no-cost pre-qualification program to determine loan potential and general short and long-term loan strategy.
Does the lender look at the history of a franchise when considering loan approval?
Yes, the history, track record and overall strength of the franchise system are important criteria that our lenders will look at when determining loan potential. It is also part of our pre-qualification process. A borrower prospect will have to have higher financial strength and better work history (and possibly industry experience) if they are investing in a newer franchise or one that has had some failed franchisees (the investors). Diamond Financial has seen, at times, that with two similar borrowers with the same financial strength, the one who chose a more established franchise system received loan approval.
Do lenders like Franchise start-up loans?
Not all SBA lenders are the same. Most are conservative and inconsistent – and slow! It is why Diamond Financial is in business and works with many Franchisors (the franchise system/main office) around the country. We utilize, of course, only the most aggressive and pro-franchise business lenders (both bank and non-bank), who process start-up loans. More than half of all of our loans are for start-up investments. A start-up loan will be riskier to a lender (because of no proven track record) and will require higher borrower requirements.
Are their certain types of franchises that lenders will not finance?
Our lenders will finance just about all franchises, except those that are ineligible with SBA. (An explanation of this can be found on their website, SBA.gov.) Some include franchises that lend money, adult-themed businesses and franchise systems that have their contracts and agreements (Franchise Disclosure Document / FDD and Franchise Agreement) that don't meet SBA guidelines. Lenders will also have their own list of franchise systems or even industries they will not lend to for various reasons.
