Franchising USA Cover Feb 2021

Paul Bosley launched Business Finance Depot in June 2006 as an equipment leasing company focused on lease equipment to the Fitness industry. In May 2013, Paul volunteered for SCORE, a division of the Small Business Administration and learned how SBA loans are used to provide financing to new and existing business in all industries. Over time, the company has grown to include a talented group of professionals and has expanded into the Franchise and the RV Park and Campground industries. This article outlines the various financing programs the company offers and how our franchisor and manufacturing clients use the products to provide financing to their clients.

SBA 7(a) Loans

This national loan program can be used to finance nearly any legitimate business purpose. The SBA offers loan guarantees, which reduces the lender’s risk and makes securing an approval more likely. These loans offer the lowest APR available amortized over the longest repayment term available. The following information lists possible uses of the loans and our franchisor clients currently using each aspect of the program.

  1. Finance a Start-up Business – Massage Envy, F45 Training, Venture X, Jon Smith Subs, The Great Greek, iCryo, Pembrooke Chocolatier, Fitness 1440 & Athletic Republic
  • The SBA 7(a) Loan will finance up to 85% of the total project costs including equipment, organization costs, buildout, deposits, inventory, working capital and franchise fees.
  • The SBA Express Loan provided working capital up to $150,000 for any business purpose and requires only business collateral! – Neighborly, Garage Living, Patrice & AssociatesFibrenew, Naturals 2 Go & Ace Handyman Services
  • The owners’ equity injection ranges from 15% – 30% of the total costs and cannot be borrowed money such as a home equity loan.
  • A resume with industry experience, transferable skills and/or related education is important!
  1. Capital to Expand an Existing Businesses All of the Above Franchisors
  • Same as above except the emphasis is on the profitability of the business based upon business tax returns and interim financial statements.
  • The SBA Express Loan provided working capital up to $150,000 for any business purpose and requires only business collateral!
  1. Debt Consolidation for an Existing Business – Checkers & Kampgrounds of America (KOA)
  • The funds are used to refinance business debt including mortgages, equipment leases and loans. Credit card debt is typically NOT included.
  • The resulting monthly payment must reduce the total monthly payments of all debt being consolidated by at least 10%.

Common Criteria, Terms and Conditions for the Three (3) Uses Listed Above

  • The collateral is all business assets. For loans over $350,000, additional collateral is required which is typically real estate up to the loan $ amount.
  • Good personal credit.
  • 10-year loan repayment term.
  • No prepayment penalties are most common.
  • The interest rate is prime rate as published in the Wall Street Journal (currently 3.25%) plus a risk premium typically 2.75% = 6% APR.
  • Closing Costs are typically 3% of loan amount and are added to the amount financed. Please note – new legislation indicates the SBA is waiving its loan guarantee fee until 9/30/21!
  • Timing to close – 90 days which varies with the bank workload & responsiveness of the borrower.
  1. Real Estate – Commercial Mortgages – Yogi Bear’s Jellystone Parks & Kampgrounds of America (KOA)
    • The loan will finance up to 90% of the purchase & development cost.
    • The equity injection is no less than 10% of the total cost and cannot be borrowed money such as a home equity loan.
    • The business must occupy at least 51% of the useable space. This provides an opportunity to sub lease the remaining 49% of the useable space.
  • Terms and Conditions – Same as above with the following exceptions:
    • loan repayment term up to 25 years
    • fully amortized loan repayment with no balloon payment
    • prepayment penalties – range from 1-4% over the initial 3-4 years
    • interest Rate – Prime (3.25%) + a risk premium estimate 2% = 5.25% APR.

Equipment Leasing

The main benefits of equipment leasing are that the transactions are completed quickly and the collateral for the transaction is the equipment package being financed. The typical terms require a down payment or a security deposit ranging from 1 lease payment up to 20% of the $ amount being financed. The repayment term ranges from 3 to 6 years. Once the lease is paid, the ownership of the equipment is transferred to the company leasing the equipment.

Our company has developed leasing programs for many non-fitness franchisees: Garage Living, Smash My Trash and Red Box + which require trucks or vans and equipment.

We designed leasing programs for 3 of United Franchise Group’s storied franchises, Signarama , Experimax and Fully Promoted. We have served as a main source of equipment leasing for fitness franchises including F45 Training , Blink , Athletic Republic, The Camp Transformation Center & HOTWORX and for fitness equipment manufacturers including Keiser, Promaxima & Woodway.

Unsecured Business Credit Card & Lines of Credit – 7 Eleven & Curves

Our company works closely with an aggregator specializing in unsecured business and personal credit cards and lines of credit for financing in addition to an equipment lease or for clients not eligible for SBA loans for any reason.

Our team is proud & honored to serve our diverse client base and we are poised to expand, so if you are a franchisor or franchisee and want to learn more about how we can serve your financing needs, please contact Paul Bosley by calling  (800) 788-3884 or emailing

For more information, please visit



Please feel free to contact me with any questions at your earliest convenience. In the meantime, we invite you to click on this link to view our 2 video series to prepare financing your business and the financing options available in today’s marketplace and to click on this link to watch our SCORE webinar “Best Financing Options for Your Small Business”.  Also, please visit our website & my LinkedIn profile to learn more about our company.



  1. Paul Bosley – Owner
  2. Marisol Cruz – Chief Operating Officer
  3. Christy Bosley – Customer Service
  4. Ken Countess – Marketing Director
  5. Gary Raffensberger – Director of Operations
  6. Iveta Rietschel – Chief Financial Officer
  7. Stephen Indicator – Business Development Director
  8. Patricia Maldonado – Public Relations Director
  9. Frank Young – Director of Finance
  10. Louann Driver – SBA Loan & Franchise Consultant
  11. Balaji Elumalai – DocuSign Expert