Good loans for franchises are a lot harder to acquire than they once were. There are still plenty of lenders around willing to offer finance to franchises, but the offered terms are not always favourable. Increase your chances of getting good terms by:
· Creating a solid financing plan
Securing loans for franchises is becoming an art. Only franchises who know exactly what kind of finance they require, and where to search for it, find the best deals. If you cannot assemble a team dedicated to finding the best financing, use professional counselling and comparison services. These are not always cheap, but they are good investments.
· Starting your search with local banks
Local banks are recovering, and many of them are actually starting to expand again. This means more financing opportunities for franchises.
· Forgetting about 100% financing
If you’re a start-up, you will be receive a better loan if you’re willing to put down at least 20% and borrow the rest. There is no other way.
· Not being afraid of secured loans
Turning one of your equities into collateral is risky, but it’s necessary if you wish to achieve the best interest rates for your loans. Few lenders are willing to take any risks in the current economic climate, especially if the borrower is a start-up.
· Getting help from experts
Often it pays to have an impartial opinion of your business plans. It’s the same with financing. Having financial experts guide your borrowing can be of tremendous help, and sometimes through them you will be able to discover more effective financing options.
Funding Tips with Compare The Financial Markets
While it’s possible to get good loans for franchises in 2017, most lenders in the UK will require more securities than they did six or seven years ago. Talk to the experts at Compare The Financial Markets.