Franchise Services The art of C
hris says: “When borrowing money for your business, my fi rst recommendation is match the method of borrowing to the purpose. For example, if you need to buy a new van or equipment, it’s arguably better to fund this by way of leasing or hire purchase rather than use up valuable
borrowing money
Chris Roberts, director of Franchise Finance, shares his hints and tips to help make the funding process less stressful
borrowing capacity with your bank. Some people don’t like leasing because they want to own the asset from day one – I would ask: is it really important? What matters is having use of the asset in order to generate income. “Another key piece of advice is do not wait until you desperately need fi nancial help. At that stage, it is likely that most lenders will reject an application because the risks of lending at this point are too high. A much better approach is to be proactive and project forward, ie using a cashfl ow forecast adopting a ‘worst-case scenario’ approach to make sure you have a cash ‘safety net’ in case of need.
“This may take the form of a business
overdraft facility, where you only pay interest on any money you borrow, a loan where you keep some of the funds in a separate account just in case or requesting higher limits than you actually need on business
credit or charge cards. Yes, you will probably end up paying an arrangement fee for the privilege but my advice is that it is worth it and you should look at this as an investment rather than a pure cost. “Keeping your personal credit score in good shape is important. If your score is in poor shape, you may fi nd that your request for business borrowing is declined, or approved – but at a much higher cost. “It is also likely that you will be required
to provide your bank statements (business and personal) to evidence that you operate your bank accounts well, within any agreed borrowing. So, monitor your bank account activity carefully and responsibly to avoid any adverse impacts!”
Franchise Finance has worked with thousands of franchisees, and maintains a success rate in arranging fi nance of 95 per cent.
Franchise Finance Finance services
www.franchisefi
nance.co.uk info@franchisefi
nance.co.uk 01844 355 575
£50M LENDING FUND YES £50 MILLION!
**
* ** *
Including Loans, HP and Leasing deals At competitive rates
Allocated to the Franchise Market through Franchise Finance Limited* Example uses:
Decisions normally within 48 hours For amounts between £5,000 and £500,000 With up to 5 year Repayment Periods
For you to use for buying or growing your business
*Subject to terms and conditions and normal credit checks
To apply for funding please Email or Telephone us:
info@franchisefinance.co.uk www.franchisefinance.co.uk
01844 355575 90 |
BusinessFranchise.com | May 2018
Raising Loan Finance Store Purchase or Expansion Refurbishment Rebranding Working Capital Stock Finance
Signage and Security Air conditioning and Lighting EPOS, Telephone or Computer Equipment Fridges, Freezers and Chillers Display Cabinets, Counters & Shelving Vending Equipment Commercial Vehicles
Do ask us if you do not see here what you need! Franchise Finance Limited is Authorised and Regulated by the Financial Conduct Authority
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