I have been in the business of selling franchises for some time now and one of the most common questions I get is “do you offer financing?”. The answer to this question is yes, but which one of five ways would you like to go about obtaining financing your business?

In this market, we have seen a decline in banks stepping up offering the capital to get into business, although this is starting to change. What I have seen more and more of, is using a 401k to approach the franchise purchase. In this market with volatile returns, that thankfully have come back somewhat, what better person to bet your money on then yourself?

Back in 1999-2001 I spent some time trading, and did fairly well, but when the market started to tank I decided to get out of stocks and invest in a myself. I haven’t looked back since then and I would encourage you to look for ways to put a few dollars down on yourself.

If you are interested in looking into using your 401k to finance your franchise there are a few groups out there that can help you. Benetrends, and Franfund are both well known. I have come to know Randy Staples, an upstanding lawyer who really has pioneered this approach. Feel free to look him up and let him know I sent you.

Check out the Finance Purchase Plan.

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