Want to Buy a Franchise: Don’t Let Credit Card Debt Ruin Your Funding Options

Thinking about buying a franchise — or advising someone who is?
Here’s something most people don’t consider until it’s too late: High Credit card balances can quickly and quietly wreck your funding options.

Even buyers with good credit scores are getting denied for unsecured bank loans because their credit card utilization is too high or they’re carrying too much unsecured debt overall. Most lenders want to see total unsecured debt at $25,000 or less, and low utilization per card.

With credit card debt rising across the country, I’m seeing this play out more often — especially with buyers pursuing fast-moving opportunities like 7-Eleven. Many people use their cards during the franchise research phase (travel, deposits, living expenses), and then suddenly their utilization jumps. Their score might still look fine, but some lenders see a higher risk and may decline the loan.

If you or your clients are thinking about franchise ownership, it’s worth taking a close look at personal credit before applying for funding. A few small changes — like paying down high-utilization cards or avoiding new credit accounts — can make a big difference.

At Flourish Commercial Capital, we can review and prequalify clients within one business day and give them a clear understanding of whether they’re start-up loan-ready or what they might need to adjust. Getting this clarity early can save a lot of time and a lot of stress!

Flourish Commercial Capital can help you finance your clients’ dreams of business ownership.
If you’d like to see whether an unsecured bank loan is a good fit for your clients, I’d be happy to help.

Flourish Commercial Capital, Funding Your Business. Fueling Your Dreams.