Lowered Interest Rates: What it Means When Buying Your Franchise
Are you considering buying a franchise? Was becoming a business owner on your list of things to do before the pandemic hit and left you wondering what to do next? If you're an aspiring franchisee whose plans were put on hold, rest assured that you aren't alone.
Not because there isn't a need for new businesses of course – many industries are thriving in the pandemic, even struggling to keep up with their newfound business. However, future franchise owners are on pause because of the uncertainty that lies ahead. They aren't sure when life will return to normal, and in the meantime, it feels safer to wait it all out.
We're big advocates in pushing forward in the present, no matter the circumstances. And while we understand certain limitations that can come from starting your business in the status quo, it shouldn't be a factor that holds you back. In fact, you can stop and look at the perks that can come from starting your business during a global anomaly.
Take Advantage of Lowered Interest Rates
One of the biggest changes taking place right now are lowered interest rates on loans. If you're looking to get a business loan or borrow toward your future business, now is the time to look. Interest rates are lower than they have been in recent years, and as a future franchisee, this means fewer dollars paid back in to your borrowing entity.
As an aspiring business owner, this can mean borrowing power under your belt. Consider how much funds you need vs. how much are available in the status quo. You can also consider aspects like payoff dates and dollars saved when you aren't racking up extreme interest prices. In addition, interest rates lower with higher borrowing amounts, giving you incentive to put more equity into your upcoming brand.
In times of economic turmoil, loans can also be obtained with less collateral or fewer caveats. If you were unable to obtain funding in previous months or you were on the fence about borrowing before, it's likely that the odds have tipped in your favor.
What's more is that banks have fewer customers applying for loans, so your application can head to the top of the pile, and granting you quick access and personalized responses. If you're a borrower who wants to deal directly with a lender and gain fast turnaround times, now is an ideal time to borrow.
Is the Pandemic a Good Time to Buy Your Business?
In uncertain times, it feels comfortable to sit still and wait. To ride out the storm and make big moves once everything has calmed. This is a safe way to ride into business ownership after the pandemic. However, it's also a move that leaves you without your dream job and essentially waiting for the world to move in your favor. It also means you're at the mercy of interest rates and loan terms that will come to light once the world has somewhat returned to normal.
Don't sit and ponder the what ifs. Go out and make your business happen. Take advantage of new business terms and financial opportunities that can benefit you well into the future. Go after the job you've always wanted. The status quo is full of unknowns, but when will franchising not be a time of confusion – at least to some degree? That's part of the beauty in owning your own business – using what you know and creating the best ways to solve each issue as it comes along.
As a growing franchise owner, you'll put your best skills to work, you'll serve customers and their needs, and you'll adjust to the market. That means finding ways around pandemic shopping and meeting patrons where they need you most.
Finding Growth During the Pandemic
There are industries growing in the status quo. There are franchise locations who are actively hiring and drawing in new workers by the day. It's not a time of complete economic backsliding, it's a time wherein brands find their own way to thrive. It's a time where brands find a way to fill customers needs and use it was a way to push themselves forward.
Be smart. Be strategic. And be a new franchisee. Take note of economic anomalies, like extremely low interest rates, and how you can use them to push your franchise into reality.
By Bethaney Wallace | May 01, 2020 | General Franchise Information