Nowadays, when people search for smart ideas, a franchise business is the first choice for millions. Are you also planning for the same? If you are or own such a business, you are undoubtedly aware of the importance of franchise finance. It helps you obtain the necessary funds to grow your franchise business and scale to new locations. Also, there are so many business franchise finance options.
Selecting the best finance option among the oceanic options is a big task. Why not filter out the best ones? It also needs accurate knowledge of the market. A business finance broker can help you here through its insight. TheBusinessFunds has been active in this sector for more than a decade, and we have great franchise finance companies registered with us. If you need quick finance for franchise for your business, post your loan query now. Our dedicated team support will understand your business goals and spot suitable lenders.
Before knowing this finance, you should understand what a franchise is. The franchise is an authorisation by a brand to a franchisee (who takes the franchise) to practice commercial activities and sell its products.
For example - A fast food business has multiple franchise outlets in a city operated by others, but the business owner is the fast food company owner. However, the earnings of the franchise will be owned by the franchisee. Still, the one who purchases a franchise gets all the income. In return, the franchise owner pays a considerable amount to the actual business owner.
Understand franchise finance
Franchise finance is a funding source for entrepreneurs who want to invest in or operate a franchise. They pay the money to the franchisor, the actual owner of a brand, and in return, sell the brand products and services. This is how franchise funding supports those who want to make money in this sector.
Advantages of funding in franchise -
The franchise model is quite popular because it has many benefits. This is why finance companies want to support this business type and earn precious customers. Read the benefits below. You will feel convinced about the calibre of owning one.
Selling established brands ensures easy funding - The franchise model allows people to sell the products of the established brands. It reduces the hard work of marketing and promotion. When a business name is already popular, you only need to open its outlet. Just imagine you will need to promote a Domino’s pizza franchise.
Easy approvals, timely disbursals - When you buy a franchise of a known brand, finance companies easily approve funds. It is why funding a franchise is much easier than any business loan. It is a good choice not only in the UK but also in other parts of the world.
Franchise finance benefits
Proper training and support help in easy fund approval - Everything in a franchise business is very convenient. The franchisor explains everything about the process and the products. The training helps the franchisee to qualify for the funds easily.
Get support to buy equipment and premises - To run a franchise, you must have the right equipment or appliances and premises. Both demand considerable money, and franchise finance helps you with that.
The process to get franchise funding is quite straightforward. To be eligible for franchise finance in the UK, you need to take care of a few things. Follow a few steps, and you will be ready for your next move in the business. Below are the precise and short steps to borrow funds. TheBusinessFunds believes in spreading knowledge as well. Before we find a finance company for you, read below what makes you eligible for finance.
Franchise business plan - Yes, of course, the franchisor will surely ask you how you will manage the business. Make a plan that sounds futuristic.
Franchise fee - The fee is to enter an agreement to purchase a franchise. This may span from a few hundred pounds to thousands or millions.
Equipment cost - If the business includes the use of equipment, you need to pay for its cost. This cost can be flexible depending on the franchisor.
Premises - This is the most important part of the business and its infrastructure. It includes the cost of the shop that you will buy or rent.
Stock- You can buy this from the franchisor or an authorised supplier.
Working capital - You will have to have funds to run a business. If you need additional assistance, instant business finance is also available.
Things you need to be eligible for business franchise funding
Vehicles - You may also need to purchase commercial vehicles. Funding is available for this need, too. Usually, leasing or hire purchase is a common choice.
Promotion/marketing cost - A brand may not need promotion. Still, the world should know the brand is available at a new location. Therefore, promotion is also essential.
All the above aspects are vital in the franchise business. A good deal on a franchise loan in the UK can handle anything related to cost. Whether it is the equipment, premises, working capital, or finance options, they help fulfil every requirement.
Considering the popularity of the franchise business model, the finance market has invented different types of loans for franchise business. Read the types below, and let us see which relates to your business goals well.
Franchise finance options
You can get finance through loan lenders for franchise purchase. As many lenders are available online and offline, it will be difficult for you to filter the most important ones. The assistance of a small business loan broker can be a good option. We always focus on finding the best franchise business finance options. We have helped thousands of franchise owners and are eager to help more ambitious people.
Comparison is always vital when planning to finance a commercial purpose. The lenders or finance companies we suggest to you will be the best in the industry. The one that suits your needs best is a different thing. As your franchise loan broker, we will give an unbiased suggestion considering your business goals. Our support team and experts know well what is going on in the market. They know about the latest alterations in the interest rates and which lender has added a new feature to their franchise loan.
A business broker helps you see the other side of the coin. We indeed respect your choice. It is only that we can make you aware of the other options. After all, you will never want to get stuck in a wrong deal. However, we can also help you switch finance companies if you are unhappy with the current one. Why not make the right decision on the first chance?
If you ask this question, it means you believe in making wise and rational choices. Fair enough! Let us help you make the right choice with the reasons below that explain why you should choose us.
Why Choose a Franchise Finance Broker?
Yes, there can be specific terms and conditions for lenders. But yes, you can get the franchise finance. Your recent financial behaviour must show some improvement. Also, you must have a considerable bank balance. The finance companies always see your current financial condition and sense your intentions for a financial product. Also, the existing obligations and their impact on your future finances concern the lenders.
It is always your choice whether to hire or not hire a business finance broker. It can help you find the relevant lending options. Several disadvantages of not hiring a broker are -
It’s somewhat essential because a prime location brings more customers. You may have taken a franchise of a renowned brand, but at the end of the day, you need a good location. Isn’t it? A good brand may not get noticed if the location of your shop is not good. Your location is essential to attract new customers and retain the existing ones. A popular place is also easily accessible through public and private transport.
Of course, you can switch your loan lender. We understand that sometimes borrowers end up taking the wrong deal due to several conditions or ignorance. TheBusinessFunds can find relevant and affordable lenders for you. Let us know your current status in the existing loan, repayments, and rates, and our team will start its search. However, it does not take much time. Also, the fund deposit may happen in a maximum of one week once you finalise one of the finance companies we will suggest to you.
Yes, you can. However, everything depends on your eligibility and financial capacity to repay funds. We can connect you with finance companies that have diverse franchise finance options. You can choose one to borrow funds for more than one franchise or two different finance companies. We have always helped franchise owners find the right lender. Now, we are eager to help you as well. Let’s not wait more. Contact us now and let us know and explain how we can help.
