Most likely you're now asking yourself, "What is the investment to get into and start a Bin There Dump That franchise?" BTDT requires a modest investment compared with many other franchise or small business opportunities. There are trucks, bins/dumpsters, daily operating costs and the initial franchisee fee.
To get started you need around $65,000 to $75,000 in cash - that is either in your bank account, accessible through liquidation of stocks/bonds, the rollover of other financial assets, or money injected by a partner, parent or angel investor.
Over the first 12 months the business must grow by adding more equipment, i.e, bins and another truck. - Therefore you must have the ability to borrow or leverage another $75,000. This is commonly called opportunity capital. This may be in the form of a line of credit, ability to obtain leases on the bins and another truck. Usually a credit score of 740 or higher is ideal, although a 700 credit will usually suffice.
A prudent measurement for investing is approximately 30% of your net worth if you are a low risk individual. Higher risk personalities may invest up to 50% of their net worth. The range of net worth needed for BTDT is $250K to $300K.
Funding & Financial Information
Congratulations on the steps you've taken so far in your franchise investigation! Many people want to own their own business, but for one reason or another don't even make it this far in the process. The fact that you are ready to start exploring financing options says a great deal about your desire to become a franchise business owner! As you embark on your journey of franchise investigations, one of the most important steps is to secure financing.
By the time you are ready to make your final decision on a franchise you MUST have your funding in place. The current environment in the lending markets makes selecting the right resource for your funding very important. As of this writing, credit markets are still tight but are starting to "thaw."
Banks are beginning to lend on Home Equity again.
Many of our U.S. franchisees are utilizing their retirement to fund the business through a U.S. government overseen program called Rollover for Business Start-Ups. No penalty, no interest rate, no immediate repayment to your retirement account. We can introduce you to a company that can talk you through this option
SBA and SBDL loans are attainable but there are eligibility factors that have to be met to attain SBA financing. Two main factors affect the ability to borrow today:
The quality of the franchisor. Lenders may require less down and lower collateral for good franchisors like Bin There Dump That.
The quality of the franchisee candidate.
For the franchise candidate, SBA lenders consider:
The borrower has a 25-30% cash payment into the total project cost of the business
Has cash reserves after the down payment
Has an outside source of income (working spouse or a semi-absentee business that can be started while the borrower keeps their present career.)
Has a 50% collateral to loan amount ratio.
Has either business ownership experience, industry experience or strong management skills.
A credit score above 700
Depending on the funding source, funding can take a few weeks to a few months. The financing part of your business investment should be as complete as possible as you decide on a business. If not, this could delay your progress by several months.
There are two Bin There Dump That financial partners. These companies have been carefully selected to ensure that you are afforded the best possible service at a fair price for their service. These companies have established relationships with numerous lenders that specialize in one or more parts of franchise financing. To access our lending partners information we request that you register your contact information. There is no cost to you for an initial consultation and speaking with them does not obligate you in any way.
