A Borrower Takes on Four Franchises in Under Six Months
Learn how a successful businessman with a vision was able to purchase multiple franchises, with limited restaurant experience, in a short period of time.
Loan Amount
$2,050,000
Loan Purpose
The Small Business
Charley's Philly Steaks | Multiple Locations in the Dallas-Fort Worth Metro Area
The Financing Challenge
When the client came to us with the vision of starting his own Charley’s Philly Steaks franchise we took everything into account. He was a very seasoned and successful businessman in the insurance industry, with a great outside income, but little restaurant experience. Historically, the franchise took a minor dip in sales but was starting to see a ramp up. The business was strong, and the market and desire was there. We took on the challenge and funded two startups for our borrower. Our Ready Capital Business Development Officer went “boots on the ground” to assess the success of the restaurants —even seeing how many customers were coming in through the door. We saw the potential of this franchise with strong sales projections and the business savviness of our client. We eventually funded two additional loans for him for a total of four locations in under six months.
SBA 7(a) Loan Scenario
Here's what our borrower brought to Ready Capital
Collateral Shortfall
A lack of substantial collateral.
Lack of Industry Experience
Lack of principal experience in restaurant or franchise ownership; mitigated by the strong franchisor, who offers training and assistance in the startup process.
Managerial Expertise
Successful managerial experience, including owner/operator of an insurance business.
Strong Business
Strong Franchisor business with over 30 years of successful operations and a well-known brand in the marketplace.
CREATIVE SOLUTION
Reliable Results
- The loans provided our client with the necessary financing to start up the Charley's Philly Steaks franchise in multiple locations within Walmarts in the Dallas-Fort Worth Metro area.
- This transaction let to the creation of many full and part-time jobs within the franchise and will expand the business portfolio of the borrower.
- We were able to create a very satisfied repeat customer after the first two loans and go on to quickly fund another two in a very short period.
The Non-Bank SBA Preferred Lender Difference
A small business loan is not an empty box like a checking or savings account. No two small businesses are alike when it comes to their financing needs. This means that small business financing requires out-of-the-box thinking and capabilities many banks simply can’t offer.
Ready Capital is a non-bank, SBA preferred lending partner (PLP). We speak fluent small business and have the process in place to help them reach their goals the first time.