Should You Play the Interest Rate Game?

Should You Wait for Lower Interest Rates Before Opening a Franchise?

We all know it and hear about it from clients: interest rates aren’t exactly friendly right now. If you’re considering opening a franchise, you might wonder if it’s better to wait until interest rates drop. After all, who wouldn’t want a cheaper loan, right? But before hitting the pause button on your business dreams, let’s talk about why waiting might not be the best move.

Timing the Market is Tricky!

We’ve all heard that timing is everything. This is especially true in business. But there’s a big difference between timing the market and jumping on a great opportunity. Waiting for interest rates to dip is like trying to predict the weather—you never know what will happen. Rates could stay high or even go higher. Although indications are there will be a decrease in rates this fall, it can take months for this to be reflected in unsecured loan rates. You can be stuck waiting indefinitely.

On the flip side, a solid franchise opportunity doesn’t come around every day. If you find a franchise that’s a great fit, with a strong brand and proven success, it might be worth moving forward even if the interest rates aren’t ideal. The chance to build something successful might outweigh the extra cost of borrowing.

The Hidden Cost of Waiting for Rate Drops

Here’s something to think about: while you’re waiting for those rates to drop, you’re also missing out on potential opportunities and profits. Every month you don’t open your doors is a month without revenue! And that’s not all—what if someone else jumps on that franchise opportunity while you’re waiting? They could be raking in the profits while you’re still sitting on the sidelines.

Starting sooner rather than later also means you start building equity in your business right away. Even if you’re paying a little more in interest, the value of your franchise could grow enough to make up for it—and then some. Plus, getting in early could give you a head start on expanding or even financing your expansion at a lower rate down the road.

Leaning on a Strong Franchise System

One of the great things about franchising is the support you get from the franchisor. Many established franchises have connections with lenders who might offer better terms than you’d get on your own - think our Unsecured Bank Loan Program. And don’t forget the training, marketing, and operational support that can help you hit the ground running. With the right franchise opportunity, you could be turning a profit faster than you think, making those higher interest rates less of a burden.

In a Nutshell: Don’t Let Interest Rates Stop You

Yes, interest rates matter, but they shouldn’t be the only factor in your decision. If you’ve found a franchise that checks all the right boxes, the benefits of starting now could far outweigh the costs of waiting. You’ll build equity sooner, get ahead of the competition, and tap into the support of a strong franchise system.

So, if you have found the right opportunity, don’t let interest rates keep you from starting your dream business. It might just be the perfect time to dive in and start building the business of your dreams. Flourish Commercial Capital can help finance your dreams of business ownership.