Make the Most of Your Funding Checklist

Funding Checklist

Since financing is one of the most critical concerns in purchasing a franchise, make sure you follow a funding checklist. First, check your Credit Score.  The better your credit, the better your lending options. WalletHub recently became the first and only website to offer free credit scores and full credit reports that are updated on a daily basis.

If you need to improve your credit or maintain it, here are some suggestions:


(Include Spouse and/or other Partner)

¨   Pay down credit card balances to increase available credit. Below 50% is good 35% is great.

¨   Make sure you are not late on any payments

¨   Consider checking the credit score for spouse (female credit scores tend to be higher)

¨   AGAIN – Talk to a funding specialist or a franchise consultant BEFORE applying for a loan



¨   Don’t cancel any credit cards

¨   Never cancel older credit cards – Credit cards held for many years improve credit

¨   Don’t make loan or credit card applications – excess inquiries may lower your credit rating

¨   Don’t co-sign on any loan

¨   Don’t go to a bank for funding advice – they’ll try to get you to fill out an application that will spur an inquiry.


 ¨   Do discuss your financial resources with a funding consultant or your franchise consultant FIRST to determine what type of funding/resource options are available for your particular needs – BEFORE submitting applications.

¨   Obtain 2 months bank statements.

¨   Obtain Tax returns for last 3 yrs. Request tax returns: $57 ea. Yr.

¨   You might go to  or Obtain credit score & report. If below 680 consider a credit repair agency.

o   Note: This is lower than your actual FICO score – but it’s free and usually close. Sign up and cancel within 7 days to avoid being charged. is more accurate but you must pay for it.

¨   Review your credit report – check for any delinquencies or late payments. Challenge the “Creditor” in writing to produce evidence of that delinquency in writing for anything you feel is not justified. If they cannot then file a complaint with the reporting agency (EquiFax, Sperion, TransUnion).

¨   Collect Two Months of paycheck stubs (including most recent). Also include any alimony/child payments.

¨   List of monthly expenses.

¨   List of any other Assets: CDs, Statement from brokerage house for any securities (stocks, bonds, etc) that are not part of a retirement plan. Other real estate (with legal description and location).

¨   Statement(s) of 401K/ IRA or other retirement funds (including spouse).


Example of Financial Statement to be completed before being introduced to the franchises:

Assets Liabilities Income Expenses
Checking account $ Notes Payable $ Salary $ $
Savings account $ Home Mortgage $ Bonuses orCommission $ $
Stocks/Bonds/Securities $ Other Real Estate $ Dividends and
$ $
Retirement Plan/IRA/401K $ Auto Loan $ Real Estate Income $ $
Home (Market Value) $ Credit Cards $ Other (Itemize) $ $
Other Real Estate $ Charge Accounts $ $ $
Autos (Market Value) $ Taxes Payable $ $ $
Life Insurance(cash value) $ Other Liabilities $ $ $
Your own business $ $ $ $
Money due to you $ $ $ $
Other Assets (itemize) $ $ $ $
Total Assets (Itemize) $ $ $ $
Total Assets minus Total Liabilities Equal Net Worth $
Difference between Income and Expenses $
Amount of cash available for franchise $


Note: Do not complete this right now. This Financial Statement is simply for your reference in knowing what to expect.

If you would like assistance –