Franchise Debt Consolidation

Consolidate multiple franchise debts into one lower payment. Reduce interest rates, simplify finances, and improve cash flow with specialized debt consolidation loans.

Common Debts We Consolidate

  • Merchant Cash Advances: 25-50% APR → 9.5-15% APR
  • Business Credit Cards: 18-29% APR → 9.5-15% APR
  • Equipment Loans: Multiple payments → One payment
  • Working Capital Loans: High-rate short-term debt

Debt Consolidation Benefits

Interest Rate ReductionSave 10-35%
Monthly PaymentReduce 20-50%
Loan Terms3 - 10 Years
Approval Time1 - 2 Weeks

Franchise Debt Consolidation Calculator

Calculate potential savings from consolidating your franchise debts into one lower payment

Franchise Debt Consolidation Calculator

Calculate potential savings from consolidating your franchise debts into one lower payment

Current Debts

Debt #1

Debt #2

Debt #3

New Consolidation Loan

Typical range: 9.5% - 15% for qualified franchises

Typical range: 36-84 months

Working capital beyond debt payoff

Ready to Consolidate Your Franchise Debt?

Connect with debt consolidation specialists who understand franchise financing and can help structure the optimal consolidation loan to maximize your savings and improve cash flow.

Real Franchise Debt Consolidation Examples

Quick Service Restaurant Franchise

BEFORE Consolidation:

Merchant Cash Advance:$3,200/month (35% APR)
Business Credit Cards:$1,800/month (24% APR)
Equipment Loan:$950/month (16% APR)
Total Monthly Payment:$5,950
Total Debt Balance:$185,000

AFTER Consolidation:

Consolidation Loan:$3,100/month (12.5% APR)
New Monthly Payment:$3,100
Monthly Savings:$2,850
Annual Savings:$34,200

Full Service Restaurant Franchise

BEFORE Consolidation:

Multiple MCAs:$5,400/month (40% APR)
Business Credit Lines:$2,200/month (22% APR)
Working Capital Loan:$1,650/month (18% APR)
Total Monthly Payment:$9,250
Total Debt Balance:$275,000

AFTER Consolidation:

Consolidation Loan:$4,800/month (11.5% APR)
New Monthly Payment:$4,800
Monthly Savings:$4,450
Annual Savings:$53,400

Types of Franchise Debt We Consolidate

💳 Merchant Cash Advances

Typical Rates: 25% - 50% APR

Payment Structure: Daily automatic debits

Common Issues: Cash flow strain, high cost of capital

Consolidation Benefit: Reduce to 9.5% - 15% APR with fixed monthly payments

Average Savings: $2,000 - $5,000/month

💰 Business Credit Cards

Typical Rates: 18% - 29% APR

Payment Structure: Minimum payments, revolving balances

Common Issues: High interest, variable rates, credit utilization

Consolidation Benefit: Fixed rate, predictable payments, improved credit

Average Savings: $800 - $2,500/month

🔧 Equipment Loans

Typical Rates: 12% - 20% APR

Payment Structure: Multiple monthly payments

Common Issues: Multiple payments, varying terms

Consolidation Benefit: Single payment, potentially lower rate, simplified management

Average Savings: $500 - $1,500/month

📈 Working Capital Loans

Typical Rates: 15% - 25% APR

Payment Structure: Short-term, high payments

Common Issues: Short terms, frequent renewals

Consolidation Benefit: Longer terms, lower payments, stability

Average Savings: $1,000 - $3,000/month

🏪 Revenue-Based Financing

Typical Rates: 20% - 35% APR

Payment Structure: Percentage of daily sales

Common Issues: Unpredictable payments, high effective rates

Consolidation Benefit: Fixed payments, lower rates, cash flow predictability

Average Savings: $1,500 - $4,000/month

🏦 Multiple Bank Loans

Typical Rates: 10% - 18% APR

Payment Structure: Multiple monthly payments

Common Issues: Complex management, varying terms

Consolidation Benefit: Simplified management, potential rate reduction

Average Savings: $300 - $1,200/month

Franchise Debt Consolidation Process

Step-by-Step Process

1

Debt Analysis

Complete review of all current debts, interest rates, payments, and terms to identify consolidation opportunities.

2

Financial Review

Analysis of business cash flow, credit profile, and franchise performance to determine optimal loan structure.

3

Loan Structuring

Design consolidation loan with optimal rate, term, and payment structure to maximize savings and cash flow improvement.

4

Debt Payoff

We coordinate payoff of all existing debts and establish your new single monthly payment schedule.

5

Ongoing Support

Continued relationship management and assistance with future financing needs as your franchise grows.

Qualification Requirements

  • Operating History: Franchise operating for 12+ months with consistent revenue
  • Credit Score: Minimum 600 personal credit score (lower scores considered with strong business performance)
  • Cash Flow: Positive cash flow with ability to service new consolidated payment
  • Debt Amount: Minimum $50K in total debt to consolidate
  • Documentation: Business financial statements, current debt statements, franchise agreement
  • Franchise Brand: Established franchise with good brand performance history

Immediate Benefits

Average Payment Reduction:30% - 60%
Interest Rate Reduction:10% - 35%
Cash Flow Improvement:$2K - $8K/month
Approval Timeline:1 - 2 weeks

Franchise Debt Consolidation FAQ

Understanding Franchise Debt Consolidation

What is franchise debt consolidation and how does it work?

Franchise debt consolidation combines multiple business debts (merchant cash advances, credit cards, equipment loans, working capital loans) into a single loan with one monthly payment. This typically results in lower interest rates, reduced monthly payments, and simplified financial management for franchise owners.

What types of franchise debt can be consolidated?

We can consolidate merchant cash advances, business credit cards, equipment financing, working capital loans, revenue-based financing, multiple bank loans, SBA loans, inventory financing, and most other business debt. The key is having sufficient cash flow to support the new consolidated payment.

How much can I save with franchise debt consolidation?

Savings vary based on current debt structure, but franchise owners typically save 30-60% on monthly payments and reduce interest rates by 10-35%. For example, consolidating $200K in high-interest debt can save $2,000-$5,000 per month, or $24,000-$60,000 annually.

Will debt consolidation hurt my business credit score?

Initially, there may be a small temporary impact from the credit inquiry, but debt consolidation typically improves your credit score over time by reducing credit utilization, eliminating late payments, and showing responsible debt management. Most franchise owners see credit improvement within 3-6 months.

Qualification and Application Process

What are the minimum requirements for franchise debt consolidation?

Minimum requirements include: 12+ months in business, minimum $50K in debt to consolidate, personal credit score of 600+ (lower considered with strong business performance), positive cash flow, established franchise brand, and complete financial documentation. Each situation is evaluated individually.

How long does the debt consolidation process take?

The process typically takes 1-2 weeks from application to funding. This includes debt analysis (1-2 days), loan underwriting (3-5 days), documentation (2-3 days), and funding/payoff coordination (2-3 days). Having complete financial records ready can expedite the process significantly.

What documents are needed for franchise debt consolidation?

Required documents include: current statements for all debts to be consolidated, 2 years of business tax returns, 2 years of personal tax returns, current profit & loss statement, balance sheet, franchise agreement, bank statements (6 months), and personal financial statement.

Can I consolidate debt if I have poor credit or recent late payments?

Yes, we work with franchise owners who have credit challenges. Strong business performance, consistent cash flow, and established franchise brands can offset credit issues. We focus more on business performance than personal credit, especially for profitable franchises with good payment history.

Consolidating Specific Debt Types

How much can I save consolidating merchant cash advances?

Merchant cash advances typically carry 25-50% APR with daily payments. Consolidating into a traditional business loan at 9.5-15% APR with monthly payments can save 50-75% on financing costs. A $100K MCA costing $4,000/month can be replaced with a $1,800/month loan payment.

Can I consolidate multiple merchant cash advances?

Yes, we specialize in consolidating multiple MCAs, which is common among franchise owners. We'll pay off all existing MCAs and replace them with a single, lower-rate loan. This eliminates the daily payment stress and dramatically reduces your cost of capital.

What about consolidating business credit card debt?

Business credit cards typically carry 18-29% APR. Consolidating into a business loan at 9.5-15% APR can cut interest costs in half while providing fixed monthly payments instead of variable minimum payments. This also improves your credit utilization ratio.

Should I consolidate equipment loans that still have low rates?

It depends on the rates and your overall debt structure. If equipment loans have rates below 10%, it may be better to keep them separate. However, if you have multiple equipment payments creating cash flow complexity, consolidation for simplification might be worth a small rate increase.

Strategic Planning and Considerations

When is the best time to consolidate franchise debt?

The best time is when you have multiple high-interest debts, stable cash flow, and good business performance. Don't wait until you're struggling with payments. Proactive consolidation when business is strong gets better rates and terms than reactive consolidation during financial stress.

What happens to my existing credit lines after consolidation?

Credit cards and lines of credit are typically paid off but remain open (improving your credit utilization ratio). Equipment loans are paid off and closed. MCAs are paid off and terminated. This gives you a clean slate with available credit for future needs.

Can I get additional working capital with debt consolidation?

Yes, many consolidation loans include additional working capital beyond debt payoff. If you need $200K to pay off debt plus $50K for working capital, we can structure a $250K loan. This provides debt relief plus growth capital in one transaction.

What if my franchise is seasonal - can I still consolidate debt?

Yes, we understand seasonal franchise businesses and can structure payments accordingly. Options include seasonal payment schedules, interest-only periods during slow months, or building cash flow cushions during peak seasons. The key is demonstrating annual cash flow adequacy.