Equipment Financing Options for Franchises

Providing small-to-medium-sized franchises who need new or used business machines with the best advice and solutions on equipment financing.

Franchise Financing

Owners of franchises may already have inherited a fixed system and standard operating procedures, but taking up a franchise does not always include the cost of setting up a location and acquiring equipment. Over the last 40 years, Charter Capital has been providing franchise owners the equipment financing help they need as they start or expand their franchise business by connecting them with the best lending partner that would meet their funding needs.

Franchisees have to pay a franchise fee on top of their investment in building the location and purchasing equipment, and this can be financially challenging for small-to-medium entrepreneurs. Charter Capital’s franchise financing services help take this burden off the franchisee’s backs so that owners can focus on finding ways to grow and enhance their operations to make profit.

We provide franchise financing support to a wide range of businesses from any industry. Whether you are a starting franchise business owner or a franchisee looking to add more branches to your own network, you’ll find the funding assistance you need to succeed via an experienced financial broker like Charter Capital. Learn more about how to get financing for a franchise by getting in touch with our team.

franchise financing

Some of our customers...

  • are interested in the lowest rate.
  • are interested in a specific tax treatment.
  • want to avoid breaching existing lending covenants.
  • are interested in the longest term.
  • are interested in getting reimbursed for equipment they have already paid for.
  • want seasonal or other cyclical structures.
  • want to finance software.
  • want us to give the seller a deposit before the equipment is shipped.
All of our customers want a fair deal at a fair price and no surprises.

Franchise Equipment Financing and Leasing Options

A 2021 survey showed that 29% of small businesses fail because of lack of funds and 56% apply for financing to either start a new venture, expand their operations, or acquire new assets. If you are a franchise owner or are planning to apply for one, know that having limited capital should not deter you from reaching your goals. Financial brokers like Charter Capital are ready to provide you with the financial support you need to succeed.

Taxes are inevitable for anybody in business, but there’s a beneficial tool that franchisees can use to maximize their bottom line. It’s called the Section 179 tax deduction — a provision that enables businesses to write off the entire purchase of qualified equipment from their gross income for the current tax year. Here’s how this works:

  1. The franchisee (you) applies for equipment financing and buys the necessary machines.
  2. You then claim a 100 percent tax deduction for the current tax year under Section 179 for the equipment you purchased.
  3. You get immediate savings, which you can use to further expand your business next year.

Section 179 is designed to provide relief for small-to-medium sized businesses, and anybody who spends less than $3,670,000 in a year is qualified. It applies to the purchase of any tangible goods, business software, and business-use vehicles (with restrictions based on current limits).

To learn more about the Section 179 tax break, don’t hesitate to contact the Charter Capital team. Our team will be glad to discuss the details with you and how it can help your franchise financing plans.

How Financing Equipment Can Help Your Business

Most business equipment is expensive, and the high price can easily eat into a small business owners’ limited capital. The cost is higher for franchisees who have to pay for franchise fees on top of the investment that an entrepreneur would typically allocate to start a venture. With that said, knowing how to get financing for a franchise business and partnering with a provider that offers the lowest rates and cost-efficient options is important.

Here are reasons why it makes sense to consider financing franchise equipment through a broker.

  • You have access to a number of lenders and get to choose which ones offer the best rates and repayment options.
  • The broker has already vetted the lenders and has actually worked with them before to finance other business’ equipment needs.
  • You can easily access the funding you require whenever you need it.

Setting up a franchise business can be challenging, but worrying about software and equipment costs should not be part of this process. Charter Capital is your growth partner and can help you find the best lending provider so that you can focus on actually enhancing your business. Feel free to reach out to our team to learn more about the flexible franchise financing options we offer.

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