Money, money, money
HSBC’s head of franchsing, Cathryn Hayes, reveals how to
raise the cash to buy a franchise
P
OTENTIAL FRANCHISEES and that it will offer a good return Person – who are we
are likely to be considered on your investment. lending to?
more favourably for Once you have completed The franchise department at your
fi nance than conventional your research, the next step is to bank will carry out a full review of
business start-ups due to the prepare a business plan – a vital your background and reliability;
lower risk profi le of franchising; document for obtaining fi nance. training, qualifi cations, track
however, the bank will still carry As part of this you need to prepare record; fi nancial resources and
out a thorough assessment of cash-fl ow forecasts for the fi rst suitability to run the business.
your proposal. couple of years of trading.
Before approaching the bank, Your franchisor will help, but Amount and purpose
you need to research your you need to understand the Apart from the actual amount,
chosen franchise, making sure fi gures and take ownership of your bank will also look at how
that it’s the right one for you. the plan. the money is to be used. It will
W
You also need to ensure you can evaluate the business, the type of
fi

nance afford to purchase the franchise A bank’s typical approach fi nance requested and how much
to assessing a request you are prepared to invest. For an
is made up of many established franchise most banks
factors, including: will lend up to 70 per cent of the
Raising
start-up costs, for new franchises
around 50 to 60 per cent.
8
P8-9 - Fnance-Directory 09.indd 1 27/07/2009 13:44
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