Raising Funds For a Franchise

There are numerous routes available to you when it comes to raising money for a franchise. During a typical year we are actively involved in appointing 50 – 70 franchises, sometimes more, rarely less! So, we know a thing or two about funding for a franchise!

From our experience these are the most commonly used ways that franchisees fund a franchise purchase.

Cash – If you’re lucky enough to possess enough cash to buy a franchise outright, you’ll never have to report to the bank manager, and that’s no bad thing. We see around 20% of franchises funded this way.

Bank Loans

Personal Loan – Now this is an interesting one because banks have many pots to lend from. At lower investment levels we still see a lot of franchises funded by personal loans which seem to be quick and easy to obtain and although designed for consumers it is a fact that we see a lot of franchisees obtain consumer loans and use it for a business.

Business Lending – Get your business plan done along with a spreadsheet because that’s what you’ll need for a business lend.

Investor Partner

Pension Led Funding – The chancellor recently outlined government plans to allow individuals to draw out pension monies from the age of 55. This means that you, or your partner, parents who have a pension fund can provide the cash to buy a franchise removing the need for a bank loan entirely!