Franchise Opportunity
Every new business requires capital; to set up a workplace, buy equipment, or to pay for advertising, marketing etc. For anyone considering investment in a franchise opportunity it’s no different – from buying the licensing rights to the franchise, to covering the business set up and operating costs.
Franchise opportunity – specialist banking options
There are many a franchise opportunity open to investors who have upward of £350,000. Looking to finance your franchise business? A franchise specialist bank is the best option. They assess the franchise opportunity, evaluate franchises, and monitor the ongoing performance of franchisees. Preferential terms are often available, particularly for a well-established and proven franchise opportunity, whereas banks without franchise units ordinarily treat franchises in the same way as a new, independent start-up enterprise.
Franchise opportunity – finance
The level of finance available from a franchise specialist bank depends on the strength of the franchise opportunity – 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. A less proven franchise opportunity can expect less. The bank will almost certainly require security for the loan, usually a residential property with sufficient equity
Franchise opportunity – methods of finance
For investors who lack the usual prerequisite security, the Government-backed Enterprise Finance Guarantee Scheme will support a franchise opportunity, but only in conjunction with a strong business proposal. A bank’s Franchise Unit will discuss whether you qualify for finance under this initiative. Banks will require a strong business plan to consider financial support for your business. You must be able to demonstrate an understanding of your chosen market, and the ability to meet the financial commitment you are undertaking.
There are thousands of UK franchise opportunities available, so careful consideration is a must.Talk to the experts. Apply online now.
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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