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Think it's tough to get your brother-in-law to spot you some cash? Just try persuading a banker to give you a franchise loan.

Paul Gilligan found out just how difficult this can be when he prep a Deck The Walls franchise in Willow Grove, Pa. With 18 years of experience as a framer behind him, Gilligan, 38, was convinced he had the know-how to run the shop, which does framing and sells artwork. But he had only $60,000 to his name, not quite enough to cover the minimum start-up costs.

Lender after lender rejected his requests, and he was ready to give up. Just when things looked darkest, Deck The Walls helped him clinch a $163,000 loan at a local bank. Gilligan opened his shop in November 1996. Still because of his Lack of financial muscle, the terms he got weren't exactly the best on the market. He was able to secure only a 10-year loan at 11.25 percent interest, with his store as collateral. Today his business advisers are looking to refinance it

As Gilligan found out, if you're experienced and dedicated there's money available even for new franchises with limited assets "My strengths were that I understand the business, I'm young, and I have a lot of energy," comments Gilligan. But not all loans are created equal. If You want the best deal around, you'll need a strategic plan.

Bring a magnifying glass. Larry Moller, president of Lexington Capital Corp. in Deerfield, Ill., sees a disturbing pattern among franchise-loan applicants. "They mostly care about who's got the best rate," he says. Don't let sexy Percentages blind you to the other rules that are squeezed into the microscopic print of the paperwork you'll be signing. What looks like a great deal can be soured by collateral requirements and hidden costs, like pre-payment penalties and loan restrictions. Also, consider the impact of down payments. A bank's 9 percent financing might sound fabulous when you compare it with a leasing company's 10 or 11 percent, but if the bank requires a 25 percent down payment and you're cash poor, what good does that do you?

Float a balloon. It's not just a choice between high interest and fat down payments. In certain instances you may be able to secure a loan that requires nothing down and minimal payments for the first six months or longer before balloon payments kick in. Do we even need to say how important this arrangement could be to someone in a start-up phase?

Consider leasing. Instead of securing a traditional loan, you may want to look at lease financing. As with car leasing, the total cost may be higher, but the down payments sometimes lower and the overall package is easier to qualify for. And leasing gives you an advantage when you're dealing with equipment that may become obsolete. At the end of the term, you can return the equipment and replace it with new technology.

Be a visionary. You don't need us to tell you that bankers hate risk. Short-circuit any doubts they may have about you by presenting a killer business plan that lays out your vision for the future. When Calvin Johnson sought financing to open an Athlete's Foot in Washington, D.C., NationsBanc Small Business Investment Co. delivered the money on a silver platter after it caught a glimpse of his proposal. Prepared with the help of a local community-development agency, the plan detailed everything, right down to the names of troubled young people Johnson hoped to hire and a discount program for students who achieved certain grades.

Your business plan should include forecasts for three to five years, a coherent staffing formula, a marketing strategy, and well-researched financial projections -- "anything you can provide that lowers the risk perceived by the investor," advises Pierce W. Hance, managing director of Strategic Advisory Group in Sag Harbor, N.Y.

If you don't know how to write a business plan, you may wish to use a consultant; they are plentiful. Another good place to turn for help is one of the 900 Small Business Development Centers run by the U.S. Small Business Administration. To find a center near you, log on to www.sba.gov, or phone 1-800-8-ASK-SBA.

Flash some cash. For an expansion-minded franchise, strong cash flow at any franchises you currently own will turn heads. "A lender will go lighter on collateral needs or interest rates and [offer] a longer term," says John Fox, senior partner at international Franchise Capital in San Diego, Calif., which makes loans only to experienced or existing franchisees".

A case in point: When Taco Bell franchisees Dick Reese and Don Ghareeb approached Franchise Mortgage Acceptance Co. (FMAC) in Greenwich, Conn., with a plan for buying 75 additional Taco Bells, they had something most borrowers don't: a proven track record. They already owned 28 Taco Bells, with average revenues of $700,000 per restaurant. This gave the lender "a comfort level," says Reese, CEO of Tacala Inc., the Birmingham, Ala.-based company that manages their restaurants. FMAC financed nearly all of the acquisition and subsequent development costs. Today Tacala owns 116 Taco Bells and does $80 million in annual sales.

Sell your experience. Don't have the cash flow? Show them what you're made of A top-notch management background carries a lot of weight, says Mitch Davis, national accounts manager at T&W Financial Corp. in Federal Way, Wash.: "If you've been the general manager of a McDonald's for 10 years and want to open a Wendy's, you have a much better chance to negotiate your terms."

Go where the action is. Backed by government programs, some lenders have low-cost financing earmarked for inner-city businesses. The fact that Calvin Johnson's Athlete's Foot franchise would be located in Washington, D.C., enabled his lender, NationsBanc, to get additional funding from a community group set up to boost the local economy. This group, which had invested $50,000 in Johnson's franchise in return for a 40 percent equity interest, had a solid relationship with the lender. NationsBanc "jumped on [the loan] right away," Johnson says. A vice president even flew with Johnson to Athlete's Foot's headquarters in Kennesaw, Ga., for his interview. Since then the bank has anted up financing for Johnson's second store and is processing a third request now.

A related point: If you are a member of a minority group, you may be able to use that to your advantage. Begin by checking out state programs that offer loans with rates as low as half of prime.

Find the right lender. Does your banker understand franchising? This question may seem an obvious one to ask, but many people don't ask it and end up wasting a lot of time filling out applications. If a bank is accustomed to lending money to franchisees, "they'll be much more comfortable with the risk," Hance says. "Even better, find someone who knows you and knows the franchise." That familiarity will often translate into a better interest rate.

Another time-saver: Look into the specific kind of franchise lending that your prospective banker does. National lenders who specialize in franchising will typically work only with franchisees of select companies. For example, International Franchise Capital lends money to franchisees for more than 50 approved concepts, from Pizza Hut to Big O Tires. T&W Financial Corp. works with only eight franchisors. Most Mrs. Fields' Cookies franchisees working with T&W can put down a 10 percent security deposit and get 100 percent financing without collateral. But if you're buying a franchise from another chain, don't expect as much of a welcome.

Shop around. Don't make the typical beginner's mistake of being so grateful for your financing that you take the first offer that comes your way. When Tacala (the Taco Bell group) needed that funding for its 75-unit acquisition project, it approached two separate lenders and let both know it "Competitive activity is a plus," says Ghareeb, Tacala's president. In the end, Reese and Ghareeb chose FMAC because it offered the best terms, including an interest rate that was half a percent below prime. But, just as important, the mortgage company was stable and interested in funding their future ventures. "We wanted somebody who would be there past the acquisition for the development funds," Ghareeb says.

Do a background check. Though we've saved this advice for last, it's probably the one action you should take first Check out the lender as carefully as it's checking you. Find out how much experience your lender has, in order to avoid getting involved with lender-come-lately types; these guys pose a higher risk of problems. And ask how quickly the lender processes loans. You don't want to wait for the paperwork until the birth of your first great-grandchild.