How do I qualify for franchise finance?
As franchise finance is very specialised, there are many criteria. The most important is the type of franchise you are going to purchase. All banks have a list of preferred franchises they will deal with, most of the larger franchises such as McDonald’s, Bob Jane T-Mart, KFC, Bakers Delight etc. are on these lists. If you are looking for franchise finance, its best to contact our staff to see if the franchise you wish to purchase is on the acceptable list.
How much can I borrow with franchise finance?
Different lenders have different criteria and a lot of it depends once again on the type of franchise you wish to purchase. However, it could be possible to borrow up to 60% of the purchase price via franchise finance, most franchises on the lists are capped at 50% of purchase price.
As with all loans, servicing criteria must be met as well.
Do I need property to secure the loan?
As with most franchise finance agreements, these loans can be offered unsecured. However interest rates are higher for the unsecured loans so if you can offer property to the banks you will be rewarded with a lower interest rate which could help take pressure off the business.
If you have any queries, please contact our staff.