FINANCE OPTIONS

Understanding Franchise Finance

Franchise finance refers to the funding options available for purchasing or expanding a franchise. These options include supporting upfront costs like franchise fees, equipment purchases, and working capital. Franchise finance reduces risk with tried-and-tested business models and offers varied lending terms.

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What are the Benefits of Franchise Finance?

Franchise finance provides access to proven business models, offering a reduced-risk alternative to independent start-ups. With amounts ranging from £50,000 to over £2 million, and decisions made in as little as 1 week, these solutions combine speed with comprehensive backing. By adhering to FCA regulations, we ensure responsible lending that leverages competitive interest rates from as low as 5%.

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Different Types of Franchise Finance

Franchise Start-up Loan

Available amounts range from £50,000 to £500,000 with terms of 12 to 84 months. Applicants must have an approved franchise and a reasonable credit history.

Franchise Start-up Loan

Start-up loans feature interest rates from 6% to 12% APR, with decisions typically made in 1 to 3 weeks. These loans are ideal for initial costs such as franchise fees and equipment in sectors like hospitality and retail.

Franchise Expansion Finance

Lending ranges from £200,000 to £2 million over 24 to 120 months, designed for franchises with at least 2 years of trading history.

Franchise Expansion Finance

Expansion finance offers interest rates between 5% and 10% APR, with 2 to 4 weeks decision time. It supports opening new locations and upgrading systems in tech and manufacturing sectors.

Franchise Resale Finance

Amounts between £70,000 and £750,000 are available over 24 to 84 months, for those experienced in business management.

Franchise Resale Finance

With interest from 6% to 13% APR, this finance option ensures the smooth transition of franchises. Sectors include automotive and retail industries. Critical processes like valuation and terms negotiation are streamlined for your benefit.

Typical Funding Journeys on Funding Agent

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What is Franchise Financing?

Franchise Finance Application Process

Typically, applications require a detailed business plan and financial forecasts. A creditworthiness check follows to ensure eligibility. Decisions are generally reached between 1 to 4 weeks, with funds available soon after. Our streamlined processes facilitate quick, efficient applications.

Factors Affecting Franchise Finance Rates

The FCA regulates franchise finance, ensuring all practices align with ethical lending standards. Some loans may require adherence to specific sections of the FCA's Consumer Credit Sourcebook, safeguarding responsible lending.

Factors Affecting Franchise Finance Rates

Borrowing amounts depend on franchise brand, credit score, and existing financial commitments. Rates, typically between 5% and 13% APR, are influenced by borrower's credit history and franchise performance. Our solutions offer competitive and adjustable financing options tailored to your situation.

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Real Scenarios

Construction Company Needing Fast Working Capital

Situation

A construction firm had a short-term cash gap before a large invoice was paid and needed £85,000 to cover materials and payroll.

Challenge

Traditional bank applications were too slow; they needed a decision and funds within days.

Outcome

Funding Agent matched them with a lender; they received a working capital facility and bridged the gap until the invoice was paid.

Ecommerce Business Preparing for Peak Season

Situation

An online retailer needed around £120,000 to stock up ahead of Black Friday and the Christmas rush.

Challenge

They wanted flexible terms and a quick turnaround so stock could be ordered in time.

Outcome

Through Funding Agent they secured a facility, placed orders in time and managed peak demand without cash flow stress.

Marketing Agency Using Invoice Finance

Situation

A marketing agency had strong clients and reliable invoices but often waited 60–90 days for payment.

Challenge

They needed to unlock cash tied up in unpaid invoices to pay staff and take on new projects.

Outcome

Funding Agent connected them with an invoice finance provider; they now access funds against approved invoices and smooth out cash flow.

Property Developer Using Bridging Finance

Situation

A developer needed short-term finance to complete a purchase before selling an existing property.

Challenge

They required a fast decision and flexible terms to align with the sale timeline.

Outcome

Funding Agent matched them with a bridging lender; they completed the purchase and repaid the facility when the sale completed.
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FAQ’S

How much can I borrow for franchise finance?
How quickly can I get a decision on franchise finance?
What are the typical interest rates for franchise finance?
What is required to apply for franchise finance?

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