When it comes to starting a franchise, we seek to provide prospective franchisees with as much information as possible about the various steps involved in setting up your business, as well as showcasing the best of UK franchise opportunities.
One of the biggest factors in starting a franchise is the financial decision. As part of this, ensuring that your business plan allows both the initial investment and the start-up phase to be adequately financed is extremely important. It is no surprise that few people have sufficient resources to fund both the initial investment and start-up phase out of very deep pockets, so some kind of funding is usually required. So what are the options?
We asked Chris Roberts, Qualified Franchise Practioner, and Business Development Director at Franchise Finance to advise on what kinds of franchise are available.
Franchise Finance write professional business plans, arrange finance and deliver financial training through their Business Training Academy, so Chris is very well placed to give excellent advice!
"Starting out on your franchising journey is incredibly exciting. When it comes to capital, few people find themselves in the position to comfortably self-fund the entire start up amount of a franchise business, so for many, additional funds need to be raised.
The great news for franchising is that the days of having just a couple of lending options are long gone! Accessibility and availability have significantly changed in recent years, meaning a variety of options are available to you, which include:
It’s important to take your time when considering the most attractive options available. One or a number of these options may be appropriate for your given circumstances.
Some more good news is that lenders love franchising. Why do lenders love franchising? A proven business concept gives lenders great confidence. Lending decisions are based on risk, therefore a franchise concept has the potential to be very attractive to an array of potential lenders."