Franchise Investment Overview
Matco, backed by one of the largest companies in the country, handles all franchise investment financing in our office. We may finance up to $89,000 of the initial inventory and all or part of your Time Payment Reserve, sometimes with no down payment required. And, if you qualify, we may provide financing for an additional $33,000 to cover other startup expenses. We’ll even help you figure out how to borrow from your own 401(k)/IRA to get your business started. Getting started is easier than most people think.
Franchise Startup Costs
- Your Initial Inventory
- A Matco distributor buys his inventory directly from Matco at a significant discount. He then sells the tools to his customers at a higher (list) price. We’ll start you with an initial inventory of the tools most likely to be purchased by your customers. Almost all distributors finance their initial inventory, which in 2013 ranges between $60,000 and $80,000.
- A Time Payment Reserve Account
- Upwards of 70% of a distributor’s customers pay “on time” (like a credit card account). You’ll need to fund this account so that you can begin offering time-based payments to customers immediately.
- Your Truck Lease
- This is generally a much smaller figure, as you’ll need to pay for three months of the lease and insurance.
- Professional Supplies and Systems
- This includes a computer, software, and items like business cards and office supplies. In the grand scope of things, this is a much smaller amount than would be required for many other franchise businesses.
- Any new business will have similar franchise startup costs. Consequently, most people will seek financing to cover their initial costs. We do our best to make it easy for anyone with the will, passion, and desire to own their own business to do just that. Matco provides in-house financing for those who qualify, making it far easier for many of our distributors to get the franchise investment capital they need. In some cases we may be able to finance all of your initial costs.