What is Franchise
Franchise is a contractual relationship in which the franchisor (the owner of a product or service) provides a licensed privilege to the franchisee (dealers) to do business and offers assistance in organising, training, merchandising, marketing, and managing in return for a consideration often known as a franchise fee.
Obtaining finance for buying a franchise may be difficult as many lenders hesitate to fund new franchises.
At Business Money our consultants are experienced in securing franchise funding. We have strong business relationships with a number of financial institutions and banks that can help make your investment happen.
Our consultants understand what lenders are looking for, they know how to present your loan application in order to maximise your chances of getting approval.
Business Money can assist in obtaining finance for a new or existing business franchise in the following areas:
Franchise Acquisition Finance
If you are looking into a new or existing business franchise opportunity, Business Money has strong relationships with a number of lenders that offer tailor made franchise financing packages for accredited franchise systems.
In many instances we can obtain unsecured business loans for up to 70% of the purchase price, depending on the quality of the franchise system.
Generally the term of the unsecured business loan is limited to the length of the lease (if applicable) which can be up to fifteen years. Depending on the strength of the application, the right financial institution and the right business franchise system, interest only business loans are also available.
Funding Low Entry Franchise Systems
If you are interested in buying into a franchise system that has a low entry fee such as less than $100,000, you would have probably found that it is difficult to obtain finance. This is because finance for low entry franchises is not readily available.
At Business Money, we keep in close contact with the leading finance institutions to voice the frustration of the low entry franchise systems. Business franchise finance and franchise opportunities are rapidly changing and there are new packages specifically targeting low entry franchise systems that are about to launch into the market.
Call on send us an e-mail for more details.
Refurbishment or Fit-Out Finance
Franchise finance is also available if you are operating a franchised business from premises and require finance to carry out a refurbishment or a re-fit.
Plant and Equipment Finance
Commercial Property Finance
If you need to acquire the premises from where you will or do operate your franchise business, Business Money has commercial property finance solutions that will assist you in this purchase.
Working Capital for Franchises
Once you have purchased your franchise, you normally need ongoing working capital for the business. We will ascertain your cash flow requirements for the ongoing running of your franchise and will obtain a suitable working capital facility such as an overdraft, debtor finance or trade finance facility.
Bank Indemnity/Guarantees for Leases
Most franchises that are in leased premises will require a bank guarantee or bank indemnity to secure and support the lease. Business Money can arrange the appropriate bank guarantee required for your landlord.
Removal of Personal Home from Your Franchise Finance
If your personal assets, including your home, are tied up in the financing of your franchise we can offer finance solutions to remove the home from your current finance arrangements.
Accredited Franchise Systems for Franchise Finance
There is an exhaustive list of accredited franchise systems that are accredited with the various finance institutions. Even if the franchise that you are interested in purchasing or refinancing is not accredited with a particular finance institution, we have been able to obtain finance for good franchises on a partly unsecured basis.