Franchise opportunities – with Compare The Financial Markets
Every starting business requires capital; to set up a workplace, buy equipment, or to pay for that very first marketing campaign. For anyone considering investment in franchise opportunities it’s no different – from buying the licensing rights to the franchise, to covering the business set up and operating costs.
Franchise opportunities – specialist banking options
There are many franchise opportunities open to investors who have upward of £350,000 to invest. If you are looking to finance your franchise business, a franchise specialist bank is the best option. They assess franchise opportunities, evaluate franchises, and monitor the ongoing performance of franchisees Preferential terms are often available, particularly for well-established and proven franchise opportunities, whereas banks without franchise units ordinarily treat franchises in the same fashion as a new, independent start-up enterprise.
Franchise opportunities – level of finance
The level of finance available from a franchise specialist bank depends 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 franchise opportunities can expect less. The bank will almost certainly require security for the loan, usually a residential property with sufficient equity.
Franchise opportunities – other methods of finance
For investors who lack the usual prerequisite security, the Government-backed Enterprise Finance Guarantee Scheme supports franchise opportunities, but only in conjunction with a strong business proposal.
A bank’s Franchise Unit can 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.
Enter your details below to find the right franchise opportunity for you