1. LATEST NEWS FINANCIAL ADVICE FROM THE BANKS TOP LAWYERS’ ADVICE
T he ma g a z ine for franchisees
FranchisingusaVOL 05, ISSUE 4, feb 2017
$5.95 www.franchisingusamagazine.com
special
business
services
franchising
business
finance depot
introduces game
changes to finance
acquiring an
existing franchise
the ad said...
be your
own boss

2. The equipment lease usually requires a
10 - 20 percent down payment, Bosley
explained, with the rest of the lease being
financed over three years. The franchisee
then owns all the equipment at the end of
the lease period.
By combining these two financial
products, Business Finance Depot is able
to give franchisees about $250,000 worth
of equipment and operating capital at
about a 10% blended interest rate and no
early payment penalties, Bosley said.
Settling the SCORE
Bosley found his way into the franchising
industry almost by accident. After
serving as the Leasing Manager for
Keiser Corporation and Promaxima
Manufacturing for over a decade, Bosley
decided to become a volunteer for the
SCORE, a division of the Small Business
Administration of the federal government,
which offers free business consulting to
entrepreneurs.
Through his volunteer service with
SCORE, Bosley met many SBA lenders.
One of those lenders contacted him and
asked if he’d be interested in packaging
SBA loans for new entrepreneurs and he
agreed.
Shortly after, a representative from United
Franchise Group contacted him about
packaging the loans and leases for its
stable of brands and now Business Finance
Depot is working with multiple franchisors
to get their locations up and running and
put their franchisees on the road to success
faster and easier than before.
“Our niche is to look at a franchise,
figure out what equipment they need, and
package that equipment into a lease and
then combine that with a working capital
loan for $150,000,” Bosley said.
In addition to the franchises owned by the
United Franchise Group; which includes
names like Experimac, John Smith Subs,
Signarama and SuperGreen Solutions;
Bosley has also started working with
Leisure Systems Inc., which owns the Yogi
Bear’s Jellystone Park franchise.
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Big business
What many people don’t realize is that
much of the equipment they see on a daily
basis isn’t actually owned by a company,
but rather it’s leased by a company.
From airplanes to heavy equipment to
computers, software, ovens and even the
counters people see when they walk into
a business, much of that equipment is
probably being leased.
“All that equipment can be put into a
lease package,” Bosley said. “Leasing is
actually a big business. There are a lot of
companies that exist that do nothing else
but leasing.”
Franchising offers some lucrative
opportunities for leasing companies. For
example, in the Yogi Bear’s Jellystone
Park franchises, the parks have small
cabins families can rent on a nightly basis.
Those cabins are actually delivered on
trailers, which makes them titled vehicles,
which makes them perfect for leasing.
The Yogi Bear’s Jellystone Park company
is thrilled that they can offer their
franchisees a leasing package for the
cabins, which are manufactured by Cavco,
Bosley said.
For franchisors who are looking to give
their franchisees the best possible chance
at success, game changing financing like
that offered by Business Finance Depot
is a welcome addition to their finance
options.
businessfinancedepot.com
One Florida-based
company is rewriting
how franchisors finance
their locations through
a combination of
equipment leasing and
government loans.
Starting out by financing fitness gyms over
a decade ago, Business Finance Depot has
since expanded its services to franchises
and currently works with United Franchise
Group’s stable of brands, and others.
Paul Bosley, the Managing Member, said
the packaging of equipment leases and
Small Business Administration (SBA)
Express loans is a new approach to
franchise financing.
“We are basically combining 2 financing
products that have been out there for a long
time and introducing them to the franchise
industry for the first time.”
Changing the game
Prior to Business Finance Depot arriving
on the franchising scene, there were three
main ways for franchisees to procure
funding for their new businesses, Bosley
explained during a recent interview from
the company’s headquarters in Mount
Dora, FL.
Those were:
• SBA 7(a) loans, which are for
any amount from $250,000 up to
$5,000,000. The franchisee would
have to use the real estate they own as
collateral.
• Rollover as Business Startups (ROBS),
a program from the Internal Revenue
Service, which allows entrepreneurs to
dip into their retirement savings to fund
a new business without the withdrawals
being taxed as income or penalized for
early withdrawals.
• A credit card offer from some finance
companies that would provide five
credit cards each with a $20,000 limit
to franchisees with good credit. The
franchisees would be charged no
interest for one year and then be charged
standard credit card interest rates after
that.
With such limited and unsavory options
available for franchisees, it was relatively
easy for Bosley and Business Finance
Depot to come along and change franchise
financing.
Business Finance Depot offers franchisees
an SBA Working Capital Loan, plus an
equipment lease for all the equipment
necessary to run their franchise.
The beauty of the Working Capital Loan
is that the business itself is the collateral,
so franchisees don’t have to use their real
estate as collateral and they don’t have to
use money from their retirement savings.
The collateral for the equipment lease is
the equipment.
The Working Capital Loan has a 10-year
window to repay with an interest rate
including all fees of 7% and no early
payment penalty, meaning franchisees can
pay it off ahead of time if they have the
means to.
“We are basically
combining 2
financing products
that have been out
there for a long time
and introducing
them to the franchise
industry for the first
time.” - Paul Bosley
Business Finance Depot
coverstory
coverstory
Florida Company
Introduces Game
Changing Financing
to Franchising