Business franchise opportunities
Every new company requires capital; to buy equipment, set up a workplace, or to pay for advertising, marketing etc. Considering investment in business franchise opportunities? It’s no different – from buying the licensing rights to the franchise, to covering the business set up and operating costs.
Business franchise opportunities – specialist banking options
There are many business franchise opportunities available to investors who have upward of £350,000 to invest. Looking to finance your franchise business? A franchise specialist bank is the best option. They assess business franchise opportunities, evaluate them, and monitor the ongoing performance of franchisees. Preferential terms are often available, particularly for well-established and proven business franchise opportunities. Banks without franchise units ordinarily treat franchises in the same way as a new, independent start-up enterprise.
Business franchise opportunities – levels of finance
The level of finance available from a franchise specialist bank will depend on the strength of the franchise – and your business plan. For an established franchise, a bank will typically lend up to 70% of the total start-up expenditure, including working capital. Less proven business franchise opportunities can expect less. The bank will almost certainly require security for the loan, usually a residential property with sufficient equity.
Business franchise opportunities – additional methods of finance
For investors who lack the usual security, the Government-backed Enterprise Finance Guarantee Scheme supports business franchise opportunities – but only in tandem with a strong business proposal. A bank’s Franchise Unit can discuss whether you qualify for finance. Banks require a strong business plan to consider financial support. You must be able to demonstrate an understanding of your chosen market, and the ability to meet the financial commitment you are undertaking.
As with any business start-up, adequate finance is required, not to mention an in-depth knowledge of the sector, and the potential pitfalls and stumbling blocks. Thorough research is an absolute must and professional advice is invaluable.
At Compare the Financial Markets we understand the franchise business and can provide the information you require to make a success of your franchise choice.
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