RECENTLY FUNDED | $370K* SBA 7a Loan for a Cold Stone Creamery Franchise Start-up | NJ
LOAN CASE STUDY: Two partners with construction management experience identified the perfect location for a Cold Stone Creamery Franchise start-up. Speritas Capital Partners helped them overcome their lack of direct experience and get funded.
THE SITUATION: Two entrepreneurs with a lot of construction management expertise identified the perfect location for a franchise - in a brand new mixed use development (residential/commercial).
The local foot traffic from the residential side of the development, the surrounding population density and a nearby university made this location particularly attractive.
After much research they chose to open a Cold Stone Creamery franchise in the space.
But the lenders they had previously worked with in construction did not do business in the SBA space.
Given how new the SBA funding process was to the borrowers, they decided to go with an experienced debt advisor (Speritas Capital) to guide them, rather than trying to figure out the process and find a lender on their own.
The borrowers found Speritas Capital online when searching for SBA franchise financing.
Financing Obstacles
To find a lender who would agree that the borrowers’ construction management skills could translate to running a successful consumer-facing franchise.
In addition to the lack of direct experience of the borrowers, many lenders won’t consider financing a start-up even when it is an SBA approved franchise.
Learn more about SBA approved sources for the 7a loan equity injection.
Speritas Capital’s Role - Funding Solutions
Speritas worked on a story to specifically address the management skills and experience of the two borrowers, mapping their construction management skills to the skills needed to run a Cold Stone Creamery franchise.
Speritas also helped create defensible financial projections using assumptions provided by Cold Stone HQ based on Cold Stone startup locations with similar demographics and population densities.
The two major challenges - lack of experience & the business being a pure startup - meant that Speritas would need to focus on nonbank lenders because of their greater underwriting flexibility.
From the large network of lenders that Speritas Capital works with, Jeff Bardos identified an appropriate lender who was willing to consider the ‘experience story’ and the well supported projections.
Jeff helped usher the deal from introduction to close.
Questions about SBA 7a loans for a franchise acquisition? Call or text 203-247-4358, send an email, or schedule a call now with Speritas Capital CEO, Jeff Bardos.
About this SBA 7a Loan
Loan Type: SBA 7a Loan for Business Start-up
Lender Type: Non-bank SBA Preferred Lender
Loan Amount: $370K | 89% LTC
Term: 10 years / Variable
Closed in: 60 Days
“Jeff - We really appreciate your assistance and guidance throughout this entire process. This deal would not have happened without you! Thank you so much.”
Learn more about the strategic use of SBA 7a loans for a franchise acquisition.
Conclusion – Post Finance Update
The location performed as planned, almost exactly according to the financial projections. The business is profitable and the client says that this was one of the best business decisions they have ever made.
Given the entrepreneurial success of the partners’ Cold Stone Creamery location, Speritas Capital is now assisting with the financing for their next venture.
Do you need a strategic partner to advise you on your next business acquisition?
Is an SBA 7a loan right for your franchise acquisition? If you want to dig in and learn more about SBA 7a loans, take a moment to read our SBA 7a White Paper for the latest news and Congressional changes.
The Speritas Capital team is always happy to hear your story, learn more about your financing needs and answer your questions. We bring our 30+ years of banking experience and our transparent, strategic approach to every client and every deal, both large and small.
And we never take up front fees.
Jeff Bardos, CEO Speritas Capital Partners
CONTACT INFO
Jeffrey Bardos
CEO Speritas Capital Partners
Call/text Jeff at 203-247-4358
Email Jeff with your financing questions
Schedule a call with Jeff using our online scheduling tool.
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