Is it easier for a small business owner to get a loan for a franchise or for an independently owned business?
In many cases, it won't matter. The franchise may bring with it a known name, but it may also have more restrictions. What matters to most banks is the viability of the business plan and the strength of the borrower(s). Each has a pro and a con, but what the lender is interested in is the expected repayment of the loan according to the terms of that loan. The only exception might be if the franchiser is strong enough and willing to step in, in the event the loan falters. This isn't common though.
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In many cases, it won't matter. The franchise may bring with it a known name, but it may also have more restrictions. What matters to most banks is the viability of the business plan and the strength of the borrower(s). Each has a pro and a con, but what the lender is interested in is the expected repayment of the loan according to the terms of that loan. The only exception might be if the franchiser is strong enough and willing to step in, in the event the loan falters. This isn't common though.
