How is financing done?
Financing of the down payment on a route can usually be obtained through either a personal loan, second mortgage or a home equity loan. Personal loans are usually limited to $10,000 – $20,000, and that’s with good credit. The Small Business Administration (SBA) and Banks do not usually give business loans on routes, because in the case of a default, they are not in a position to take back a route. If you do opt to get money from your home, we recommend buying the route outright, as opposed to paying off that loan plus a loan to the seller. This way, you can get financing over 10-20 years and get a lower interest rate than what sellers typically give. b) The balance remaining after the down payment is usually held by the seller of route, which is personally guaranteed by buyer. The length of time and the amount of interest on the note varies according to market conditions although most sellers currently require 6-8% interest. Payments are made monthly. The amount of the monthly note is
