How to Fund or Finance a Franchise
Franchising is one of the most stable and viable
methods of starting a business. It requires drive, discipline and dedication,
but can generate excellent rewards.
Furthermore, it is almost a middle ground between being
an employee in a company and the risky life of a lone entrepreneur. While you
still have the back-up and systems of a larger corporation, you can relish the
freedom of being your own boss.
However, one of the first challenges you will have to
overcome is money. The UK average total start-up cost for a personal services
franchise is £42,000. So where might you find this essential funding?
Bank Loan
Due to the more secure nature of franchising, banks are
often content to lend up to 70% of your total investment. Speak to your
personal bank, but don’t be afraid to approach others.
Franchise
Fund
Franchise Finance had launched a dedicated £50m fund
for existing and prospective franchisees. Finance is available for amounts
between £5,000 and £500,000, and can help those looking to start a business or
expand their existing franchise.
Asset
Finance Company
With access to a myriad of lenders, an asset finance
company might provide a wide range of flexible options. Talk to them to explore
lease finance, business loans, hire purchase and/or refinancing.
Business
Grant
Grants are supplied by a variety of organisations, such
as the government, the EU and development agencies. Types of grants available
include those for training, research and development, employment and regional.
Do your research and see what might be appropriate for your opportunity.
The free,
regional Franchise Local 2You showcases are designed to help you find the
safest, most straightforward and realistic way to start your own business. Each
showcase will give you:
- information from the owners of a variety of top franchise brands
- advice from approachable experts who have worked in the industry
for years
- support from other visitors who are in the same situation
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#Funding
