HSBC |
Lloyds TSB |
Obtaining some franchise finance is often the biggest hurdle for anyone seeking to start a franchise in the UK. Starting any business can have risks, and as we know risks can be costly. It is therefore vital that you invest a lot of time and effort into researching those franchises that you are interested in. You need to be confident that it is an ethical franchise as well as the right franchise for you. Remember, there is not such a thing as too much research!
Once you are 100% that you have found the franchise for you, then it is time to look at your finances. The first step in planning your franchise finance is to establish how much money you can afford to invest and whether it is enough to purchase and run "your" franchise.
Banks like franchising! They have learnt that it can be safer to lend to franchisees of well-structured ethical franchise systems, than to those starting up their own business from scratch.
Hopefully this section will give you some guidelines to work to in order to be able to approach a bank for franchise finance in a confident way, with an awareness of the type of questions likely to be asked.
Cathryn Hayes, Head of Franchising for HSBC since 1994, has a high profile within the franchise industry, acting as a judge on the prestigious British Franchise Association (BFA) awards which the bank sponsor.
To ask Cathryn a question click here.
Richard Holden has 23 years banking experience and has supported a wide range of businesses in the small business sector for years.
To ask Richard a question click here