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Franchise Finance Program
EverGreen Financial, Inc.’s (EGF) team of seasoned professionals can structure the right solution for almost any franchise finance requirement. This includes loans for acquisitions, remodels, new development, debt restructuring and equipment financing. Instead of taking a "one solution fits all" approach to lending, we use our experience to customize loans that take your specific needs into account. We provide commercial loans and equipment financing at competitive rates, tailored to meet your needs. EGF offers both conventional and SBA backed loans for equipment and real estate. Our customers rely on us to assist them with acquiring equipment and real estate, remodeling or re-imaging their stores, financing new construction, acquiring existing stores and refinancing debt.
We recognize that one loan structure does not fit every borrower’s need and because of that we are flexible. Our terms generally range up to 10 years for equipment and leasehold improvement loans and 15, 20, 25 and occasionally 30 years for real estate. We provide construction financing for new builds, progress payment advances for equipment deposits and interim contractor invoices during remodels and leasehold improvements. EGF offers both fixed and variable rates, and, unlike other lenders, you can lock in your adjustable rate at any time during the term of your loan. This customization allows you to secure financing to fit your needs. We have expanded our lending capability to include loans up to $10 million. Our minimum transaction size for franchise financing is $100,000 however; we still maintain the ability to secure individual equipment leases. Therefore if the requirement is smaller, we are nimble enough to accommodate the request.
EGF offers both Conventional Loans and SBA loans. The SBA (Small Business Administration), a federal government entity that underwrites many commercial loans, sets the guidelines for the terms and conditions of its guaranteed loans. EGF offers a variety of SBA programs to accommodate your company’s growth, expansion or restructuring plans. The most exciting one is our SBA Express program which is a streamlined version of traditional SBA loans. The differences are considerable. We can provide up to 90% financing and may not require real estate as a secondary source of collateral if the franchise is considered Tier I.
Commitment To Service
EGF’s commitment to service is unsurpassed in the industry. We have a keen understanding of franchises from years spent financing the needs of our clients around the country. Chances are we’ve worked with your organization or an affiliate previously.
Common Questions From EverGreen Financial’s Franchise Customers:
For what purpose does EGF provide financing?
- Expansion & New Stores
- Commercial Real Estate Financing
- Equipment Leases & Loans
- Remodeling or Re-imaging
- Construction Loans
- Acquisitions & Purchases
- Refinancing & Debt Restructuring
- Working Capital
What are EGF’s general terms and rates?
- Typically up to 10 years on equipment and leaseholds (Loans)
- Typically up to 5 or 7 years on individual equipment leases
- Typically up to 25 years on real estate
- Adjustable and Fixed Rate Programs (1, 3, 5, 7 year resets)
- Transactions range from $50,000 up to $15 million
What is needed for collateral?
- First Trust Deed on real estate, equipment & leasehold improvements
- Second Trust Deed if first is unavailable
- Leasehold mortgages on ground leases
Are there any other requirements?
- Personal guarantees of owners
- Sufficient collateral coverage (loan to value)
Who is eligible?
- Established franchise operator
- Established franchise system
- Prospective Franchisee with sufficient collateral
- For equipment leases, no additional collateral required for established businesses
What does it take to close a loan?
- Typically 2 to 4 weeks after executed commitment for equipment and leaseholds
- Real estate subject to usual documentation timing
- Low closing costs - documentation prepared in-house for equipment and leaseholds
- Progress Payment Plan for flexible funding of equipment deposits and construction costs
What types equipment can be financed?
- Kitchen, Refrigeration, Walk-in coolers
- Storage area shelving, material handling
- Packaging
- Office furniture
- POS equipment and computers
- Signs
- Audio/Video, Post Production
- Distribution / Processing / Manufacturing
What tenant improvement costs can be included?
- Site work
- HVAC
- Build-out / & Building conversion
What are some of the allowable soft costs and closing costs that can be financed?
- Lender Closing Costs (generally acceptable)
- Appraisal Fees (occasionally)
- Freight; Installation; Sales tax
What costs cannot be financed?
- Franchise & Attorney’s fees
- Training expenses
- Start-up costs & Advertising
- Uniforms
Why EverGreen Financial?
Ask our customers. We did. They told us our service is what sets us apart from the competition. We are known for returning phone calls; getting answers to questions, processing loan requests and making sure your needs are met.
Since EGF’s franchise finance group is focused singularly on the franchise industry, our staff doesn’t need time to learn about your business. It is their area of expertise. We spend considerable time visiting our customers and getting a keen understanding of their operation. Call us today and establish a relationship with EGF that allows the business to grow and prosper as you hoped it would.
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