A Guide to Franchise Financing for Senior Care Advisors

In today’s ever-expanding elder care market, deciding to invest in a senior care franchise is one of the best moves you can make for your future. Of course, starting or purchasing a franchise as a business venture can be an intimidating prospect, especially for those who don’t have a large amount of capital to put down upfront. But don’t get discouraged before you begin. With the right mix of franchise financing strategies, you can make your dreams of becoming a senior care advisor come true.

At CarePatrol, we’ve seen—and helped—candidates fund their franchises in a number of ways. If you have a passion for helping seniors in your community, interested in high income potential, are ready to take on the exciting challenges of owning your own business, you have options. Let’s take a look at some of the most popular ways to invest in a franchise like CarePatrol.

Franchise Financing: What Are My Franchise Startup Costs?

One of the many things that make CarePatrol so attractive is that it is a low-risk and high-reward opportunity. Franchise financing can help cover franchise fees and other business start-up expenses, making it accessible even if you cannot afford these costs out-of-pocket. With a low initial franchise fee between $20,000–$57,000, you can enter this quickly growing market and start maximizing your revenue potential fast.

Because they can start with little to no low overhead and grow their businesses from home, CarePatrol franchisees have incredible growth opportunities.

All told, your total investment with us will be in the range of $51,120–$110,970. Considering that the U.S. senior living market is currently a $92 billion industry and growing, this is an investment opportunity that can’t be ignored.

Options for Financing Your Investment in a Senior Care Franchise

Because CarePatrol offers so much built-in support and expertise, franchisees can feel confident in their investment—and their growth potential. Financial institutions can often assist in franchise financing by working with organizations to help you access the necessary funds. So, let’s take a look at some of your franchise financing options to get your future started.

Apply for an SBA (Small Business Administration) Loan

Small Business Administration (SBA) loans are the most popular method of new franchise financing. As a type of commercial loan, type 7(a) SBA loans are backed by the federal government, making them low-risk for lenders. That means you can often expect low interest rates, attractive repayment terms, and manageable monthly payments.

Generally, to qualify for an SBA loan, you should have:

• A good credit score (640+)
• 20% down payment
• Secondary income
• Experience in a business setting
• Access to collateral

Some candidates may qualify for a low-doc SBA loan. This type of loan offers the same benefits as a traditional SBA loan, but it can be finalized in 45 days or less and typically does not require collateral. If you have a credit score above 690, no bankruptcies within three years, and can pre-pay your franchise fee, this could be an option for you.

Leverage Your Retirement Account

Many people who are new to franchising don’t realize that retirement funds are an option for them. Usually, accessing your 401(k) or IRA before you turn 59 ½ will trigger a 10% early withdrawal penalty and distribution tax. However, by choosing the Rollover for Business Start-up (ROBS) process, you can tap into these funds penalty-free.

One major benefit of choosing a ROBS is that since you aren’t taking out a loan, you won’t have monthly payments. Plus, if you have enough in your account to cover the startup costs, a ROBS allows you to launch your franchise without taking on any debt.

Establish a Portfolio Loan

This lesser-known funding option offers great benefits to qualifying candidates. A portfolio loan allows you to borrow up to 80% against the value of your stocks, bonds, mutual funds, or other securities. A portfolio loan can give you the franchise funding you need without having to liquidate your assets—meaning they can continue to appreciate in value and generate interest and dividends.

To qualify for this type of loan, lenders prefer that you have:

• A portfolio worth at least $85,000
• A maximum debt-to-income ratio of around 43%
• Securities publicly trading at a minimum of $5/share

Obtain an Unsecured Loan

Unsecured business loans up to $150,000 are possible for some candidates without risking any personal property. They’re a good option for candidates who don’t have collateral and need to move quickly on an opportunity with working capital. Most loans of this type can be finalized in three weeks or less.

To qualify for an unsecured business loan, you must typically meet these requirements:

• A good credit score (over 690)
• Utilizing less than 50% of total credit
• No more than two credit inquiries in the last six months
• No recent negative reports on your credit history

Franchise Funding Partners

If you’re interested in becoming a franchisee, you may have more financing options than you realize. At CarePatrol, we have forged long-standing relationships with trusted financial institutions to help franchisees obtain a funding plan that works best for their situation. Ask our franchising advisor about connecting with a partner who can assist you with their variety of additional funding options.

Invest in Your Success With CarePatrol

CarePatrol franchisees are small business owners and senior care advisors, helping older adults and their families navigate the complexities of finding care. Whether you’re an experienced entrepreneur with their financials securely in place or you’re brand new to this type of transaction, CarePatrol is here to help. No matter your level of experience in the senior care industry, you can feel confident in your ability to start, run, and grow a successful business with us. To learn more, request your free franchise kit today!

CarePatrol: Your Choice for the Best Franchise Opportunities

CarePatrol is a proud member of the Best Life Brands family, committed to helping people live their best lives. Invest in your future and your community by franchising with the best! You can be confident in your entrepreneurial future thanks to our proven business model, world-class business support, and robust training and continuing education programs. We welcome you to learn more about our business opportunity today.