SVP Sherwin Patidar explains how First Colorado National Bank helps franchisees acquire the capital necessary to buy a franchise.
Sherwin Patidar, SVP at First Colorado National Bank, has been with the company for 11 years, but he has been working with franchisees to help finance their businesses since 2003. In the past year, Patidar has helped about 30 franchisees receive loans nationwide. He mostly works with quick service restaurants and hospitality franchises.
1851 sat down with Patidar to learn more about what goes in to helping franchisees get the capital they need to start their businesses.
How does your company help franchisees acquire the capital necessary to buy a franchise?
Patidar: We offer SBA loans with a lower down payment required to finance a franchise. Most of the time, the franchises we work with don’t have real estate involved, so the SBA loans help. We are typically working with brands that go into retail spaces like a strip center; mostly QSR concepts.
Is it difficult to get a loan?
Patidar: It depends on the type of franchise the person wants to open, the data that’s available on that franchise and the credit of the franchisee.
Is there anything a franchise prospect can do to make it easier to get a loan?
Patidar: Having data from the franchisor is the best thing they can do. Franchisors need to be approved by the SBA in order for us to loan money to franchisees.
Is it easier to get a loan when a franchisee is expanding with a second or third location?
Patidar: It makes it a lot easier when people are going for a second loan because you already have one established location you’re operating and you have that to fall back on.
Why are SBA loans so popular?
Patidar: There’s easier access to capital and there are lower down payment options versus a conventional loan.