How to Finance a PayMore Franchise: Cash for Electronics Stores
By Anthony Cornella
A PayMore franchise loan funds a store that buys used phones, laptops, game consoles and other electronics for cash, then resells them in the store and online. That model changes the financing picture: the build-out is modest, but the business needs cash on hand every day to buy inventory from customers before it can sell anything.
This article covers published fees, start-up costs, loan options and what lenders review. It is general information only. US Professional Funding is not affiliated with, sponsored by or endorsed by PayMore; the name is used only to describe the business. Figures come from the franchisor’s own materials and disclosure document and can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice.
PayMore Franchise Loan at a Glance
According to PayMore’s franchise website, which cites the Franchise Disclosure Document dated April 17, 2026:
- Initial franchise fee: $35,000
- Estimated initial investment (Item 7): $138,750 to $268,500 for a single store
- Royalty: the greater of 5% of gross sales or $1,000 per calendar month
- Worldwide Creative Fund: 1% of gross sales
- Local store marketing: 2% of gross sales
- Technology fee: 1% of gross sales
- Financial qualifications: $500,000 net worth and $250,000 in liquid capital available for investment
- Development: the franchisor looks for owners ready to begin development within 3 to 6 months and to grow a multi-unit territory
- SBA Franchise Directory: listed as PayMore Stores (code S6898), with notes on lease assignments and lien position
What Is PayMore?
PayMore opened its first store in 2012 in Massapequa, New York, according to the company, and its corporate office is now in Raleigh, North Carolina.
Each store buys, sells and trades electronics. The company buys phones, tablets, computers, game systems, cameras, audio gear, drones, power tools and more, and it also deals in trading cards. Customers selling a device must show valid identification, and the company says devices are wiped of data before the customer leaves. Items sold carry a warranty.
How the model works. The franchise materials describe three revenue streams: in-store sales, e-commerce and recycling. Stores buy their inventory from the public and can trade and ship it among themselves, and the company says a large share of sales happens online.
Store format. The franchise site says a store needs only a “vanilla box,” and that because customers seek the store out, it does not require expensive premium retail real estate. It describes 5 1/2 day work weeks, closed on Sundays, and typically 2 people per shift. The company says the average store opens about 180 days after signing.
Why lenders view PayMore the way they do. A lender sees a small store with modest fixed assets and a cash-heavy buying process, so comfort comes from the owner’s liquidity, controls and inventory plan.
PayMore Franchise Costs
Initial franchise fee
The initial franchise fee is $35,000 per store, according to the franchisor’s investment page. Multi-unit developers pay a development fee equal to 100% of the initial franchise fee for their first three stores, plus a deposit of 50% of the initial franchise fee for each additional store.
Build-out and lease
Because the store needs only a basic retail shell, build-out is lighter than for a restaurant or fitness concept. Budget for the lease deposit, interior improvements, signage, display fixtures, a secure buying counter, point-of-sale and security systems, and storage for inventory awaiting sale or shipment.
Opening inventory and working capital
This is where a PayMore budget differs from most retail franchises. Inventory is bought from customers with cash or store credit, so the store needs a buying fund from day one, in addition to payroll, rent and marketing during the ramp-up period.
Total investment
The franchise website states that the Item 7 estimate in the disclosure document dated April 17, 2026 runs from $138,750 to $268,500 for a single unit. Expect the Item 7 table to group costs into categories such as:
- The initial franchise fee
- Lease deposits and rent before opening
- Leasehold improvements, fixtures and signage
- Computer hardware, software and security equipment
- Opening inventory and buying funds
- Training expenses, insurance, licenses and professional fees
- Grand opening marketing
- Additional funds for the initial operating period
An older page on the franchisor’s site showed a different range, so rely on the current Item 7 table. Our article on how much franchise you can afford can help you test the budget against your cash.
Ongoing Fees and How They Affect Your Loan
PayMore’s published ongoing fees add up to a meaningful share of gross sales: a royalty of the greater of 5% of gross sales or $1,000 per month, 1% to the Worldwide Creative Fund, 2% for local store marketing and a 1% technology fee.
The $1,000 monthly royalty minimum matters most in the early months, when sales are still building. Lenders deduct these fees before measuring whether the store can cover its loan payments, and because the store buys its inventory, they also focus on gross margin: the spread between what you pay customers for devices and what you sell them for. A disciplined buying policy matters as much as projected sales.
Franchisor Requirements for New Owners
The franchisor’s investment page lists these qualifications:
- $500,000 net worth
- $250,000 liquid capital available for investment
- Readiness to begin development within 3 to 6 months
- Readiness to grow a multi-unit territory in the U.S. or internationally
The franchise materials say no electronics experience is required. The process starts with an inquiry and an application, followed by review of the disclosure document. Your lender will want to see the same liquidity on your PayMore franchise loan application.
Ways to Own a PayMore
A new store. Most owners open new stores within a development territory. A lender underwrites projections, your cash and your management background. See our page on retail business start-up financing.
Buying an existing store. A resale lets a lender review actual sales, margins and inventory levels, and the franchisor must approve the buyer. Inventory value at closing deserves close attention because it changes daily. Our article on buying a franchise resale covers transfer approval and timing, and our page on retail business acquisition financing explains how purchases are structured.
Financing Options for a PayMore Franchise
SBA 7(a) loans. An SBA 7(a) loan can combine the franchise fee, build-out, fixtures, technology and working capital in one loan, subject to program rules and lender approval.
SBA 504 loans. The 504 program is built for owner-occupied real estate and long-lived fixed assets. Most PayMore stores lease a retail shell, so 504 rarely fits at start-up.
Conventional term loans. Owners with strong credit and liquidity may qualify for conventional business loans, which often expect more equity or collateral than SBA loans.
Equipment financing. Display cases, security systems, computers, device testing and data-wiping tools can sometimes be financed or leased separately. See our page on retail equipment financing and leasing. The main lender will count those payments in your debt load.
Working capital and lines of credit. A buy-sell store ties up cash in devices until they sell, and busy seasons such as new phone releases and the holidays can bring a wave of trade-ins. A line of credit can support buying without draining reserves. See our retail working capital and lines of credit.
Seller financing on resales. When buying an existing store, the seller may sometimes carry part of the price. Seller notes are typically subordinate to the primary loan, and SBA rules may limit how they are structured.
SBA Loans for PayMore Franchisees
SBA loans are made by participating lenders and partially guaranteed by the SBA. For franchises, lenders check that the franchise agreement leaves the owner in control of the business, and the SBA Franchise Directory simplifies that review. The SBA 7(a) program maximum is currently $5 million, and program rules can change.
The directory listing. PayMore appears on the SBA Franchise Directory as PayMore Stores under code S6898, with two notes. In plain English:
- Collateral assignment of lease: if the real estate where the store operates will itself secure the SBA-guaranteed loan, the collateral assignment of lease may not be signed. In other words, an owner who also owns the building should not sign a document assigning the lease as collateral in that situation.
- Lien position: the lender must make sure it holds the appropriate lien position on all collateral under SBA rules, which can affect how the franchise agreement and other creditors’ claims are handled at closing.
The listing does not approve any borrower or guarantee a loan; it simply clears the franchise relationship for SBA review. Our article on writing a franchise business plan for an SBA loan shows how to prepare the request.
SBA application tips. Bring the disclosure document, franchise agreement, a sources and uses statement tied to Item 7, a lease or letter of intent, build-out quotes, a monthly projection that separates the inventory buying fund, personal financial statements, tax returns and a résumé.
How Lenders Evaluate a PayMore Deal
Personal credit and financial history. Lenders review credit, tax returns and debts, and owners usually sign personal guarantees.
Net worth and liquidity. PayMore’s own thresholds are $500,000 in net worth and $250,000 in liquid capital. Lenders also look at what remains after closing, since inventory buying draws on cash.
Management experience. Retail, multi-unit or operations experience helps, as does a plan for hiring and supervising staff who handle cash and value devices.
Business plan and projections. A strong plan models buying volume, gross margin, the split between in-store and online sales, staffing, rent, the royalty minimum and every percentage fee. It also explains inventory controls, shrink prevention and identification procedures.
The disclosure document and franchise agreement. Lenders compare the franchise term in Item 17 with the loan term and review transfer and termination provisions. The franchise website indicates the disclosure document includes financial performance representations in Item 19; read them with your advisors rather than relying on summaries.
Historical financials on resales. For an existing store, lenders want sales reports, tax returns, inventory records and margin history.
Inventory, Cash Controls and Online Sales
A PayMore store’s main working asset is the inventory it buys over the counter. That inventory is varied, changes in value as new devices are released and must be tested, wiped and priced before it sells. Used electronics can lose value quickly, so lenders generally lend against them cautiously.
Daily reconciliations and clear buying limits reassure a lender that the buying fund is controlled.
Multi-Unit Growth and Development Agreements
PayMore’s development fee structure, 100% of the initial fee for the first three stores plus a 50% deposit for each additional store, means a multi-unit owner pays much of the franchise cost before most stores open. Lenders generally want stable results at the first store before financing the next, and they review global cash flow across all stores. Our article on multi-unit franchise financing explains how lenders approach that growth.
Real-World Scenarios
A first-time owner with a retail background. A former store manager signs for one store, contributes savings and uses an SBA 7(a) loan for the fee, build-out, fixtures and working capital, keeping a separate reserve for inventory buying.
An experienced multi-unit operator. An owner of other franchises signs a three-store PayMore development agreement. The lender reviews existing cash flow and finances the stores one at a time.
A buyer purchasing an existing store. A buyer acquires an operating store. The lender underwrites its sales and margin history, values inventory at closing and accepts a small subordinate seller note.
Common Mistakes to Avoid
- Treating the inventory buying fund as ordinary working capital instead of budgeting it separately
- Forgetting the $1,000 monthly royalty minimum in early projections
- Signing a multi-unit agreement without planning how the development fee is funded
- Overvaluing used inventory when buying an existing store
- Underestimating staffing, security and shrink controls
- Budgeting from an outdated website range instead of the current Item 7 table
For more, read the retail store loan mistakes that cost owners the most.
Next Steps to Finance Your PayMore Franchise
Step 1: Review the disclosure document. Read it with a franchise attorney, focusing on Items 5, 6, 7, 17 and 19.
Step 2: Confirm your qualifications. Check your net worth and liquid capital against the franchisor’s thresholds and decide how many stores you plan to open.
Step 3: Build a budget. Start from the Item 7 table, then add local rent, build-out quotes and a separate inventory buying fund.
Step 4: Talk with a financing specialist. Learn which structures fit and how much cash you will need. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
Step 5: Secure a site. Negotiate a lease and confirm any rider the franchisor requires.
Step 6: Apply, close and open. Submit the loan package and align closing with your build-out schedule so you can open on time.
PayMore Franchise Loan FAQs
How much does it cost to open a PayMore franchise?
The franchise website states that the Item 7 estimate in the disclosure document dated April 17, 2026 ranges from $138,750 to $268,500 for a single store.
What is the PayMore franchise fee?
The initial franchise fee is $35,000 per store, according to the franchisor.
What royalty does PayMore charge?
The royalty is the greater of 5% of gross sales or $1,000 per month. Owners also pay 1% to the Worldwide Creative Fund, 2% for local store marketing and a 1% technology fee.
How much net worth and liquid capital do I need?
The franchisor lists $500,000 in net worth and $250,000 in liquid capital available for investment.
Can I use an SBA loan for a PayMore franchise?
PayMore is listed on the SBA Franchise Directory as PayMore Stores under code S6898, which simplifies the lender’s review. Approval still depends on you, the project and the lender.
Do I need electronics experience?
No, according to the franchise materials, though lenders will look for management experience.
Does PayMore offer financing?
Check Item 10 of the disclosure document for any franchisor financing. Most owners arrange their own PayMore franchise loan through SBA or conventional lenders.
Can I buy an existing PayMore store?
Resales may be available. The franchisor must approve the buyer, and a lender will review the store’s sales, margins and inventory.
How long does it take to open?
The company says the average store opens about 180 days after signing.
Final Thoughts
PayMore offers a small-format, buy-sell electronics store with an online sales channel and an SBA Franchise Directory listing. A strong PayMore franchise loan request rests on the current Item 7 figures, a realistic gross margin and a buying fund large enough to keep shelves and online listings stocked.
US Professional Funding helps buyers finance franchise start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and retail business financing programs.
