Navigating Franchise Financing in a High-Interest Economy
Key Takeaways SBA loan default rates have doubled from 1.32% in 2022 to 2.76% by June 2024, making strategic financing crucial Alternative financing options like revenue-share and partner equity are becoming essential as traditional loans tighten Interest rates for SBA 7(a) loans have jumped to 9.46% in 2025, up from 5.85% in 2022 Non-traditional lenders offer faster approvals and flexible terms, filling gaps left by banks Franchise success rates remain at 90%, making them attractive investments despite higher borrowing costs Building a lender-ready business package with strong financials and market research is more critical than ever Revenue-based financing and equipment financing provide viable alternatives to traditional bank loans The rising interest rate environment has fundamentally changed how entrepreneurs approach franchise financing in 2025 . With SBA loan rates climbing to 9.46% and defa...