Franchise Focus Getting a ‘yes’ from a lender
Rob Orme QFP, the franchise relationship manager at Franchise Finance Limited, shares his insights into successfully raising capital
A
surprising number of people believe that banks and lenders are not open for business, but nothing could be further from the truth!
Banks and lenders are happy to lend – as long as a deal stacks up. At Franchise Finance we are experts at preparing successful credit applications. Our acceptance rate is currently higher than 95 per cent! Here are some key factors to consider when approaching lenders:
A professionally written business plan It is important to keep focus when writing a business plan, or you run the risk of
losing the document’s usefulness – keep it punchy and to the point! Franchise Finance business plans seek to provide a roadmap to success and form a vital component of any funding application.
Your credit history A good-to-reasonable credit history is very important. While some lenders are willing to look at applicants with a less-than- ideal credit history, it’s likely the cost of borrowing will be considerably higher. It is important to keep up payments for any commitments you have, if there is a valid reason for missing a couple of payments, the ‘story’ around these will need to be explained and presented to the lender for consideration.
Comprehensive fi nancial forecasts Financial forecasts are absolutely key. They should be detailed enough to present a full fi nancial picture or your application risks rejection. You need a minimum of three years’ projected fi nancials, including a
profi t and loss account, cashfl ow forecast and end-of-year balance sheets.
Franchisor history Proof that the franchise model has been successful elsewhere in the UK is needed. Include information on existing franchisees, support, training and development opportunities off ered by the franchisor. This information all enhances an application. Raising fi nance can seem a daunting
prospect to many would-be franchisees. It’s important you realise help is out there, follow these words of wisdom and you shouldn’t go far wrong, however if you would benefi t from some assistance, it’s time to call in the experts!
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 76 |
BusinessFranchise.com | July/August 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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