Monkey Puzzle Franchise News
How To Get Franchise Funding
You’ve done the research, chosen your preferred franchise, the excitement and optimism is building, with hard work business success is just around the corner.
But hold on just a minute, what about how to get funding for a franchise?
Don’t panic! There are three main avenues you can pursue to obtain funding so lets take a look at them…
Before you approach a bank it is imperative that you have two key elements in place.
A well rounded business plan is vitally important and without one most financial institutions will be reluctant to provide financial assistance. Franchise Direct offer excellent advice on creating a franchise business plan.
Secondly if you don’t have a good credit history it will have implications on attaining funding and signing a lease for your business premises. If you do have a less than positive credit history you should consult an expert who can assess alternative options.
But assuming everything is in place lets look at how you get started with a bank.
First meet with them and present your business plan. Then you need to explore the following options…
- Fixed rate loans
- Variable rate loans
- Asset finance
- Invoice finance
Ask the bank’s representative what they think is the most suitable for you. The general rule of thumb though is long term funding will require a loan, and day to day expenses are covered by an overdraft.
Funding From Non Bank Sources
If bank funding is proving difficult you will need to assess funding possibilities from non bank sources.
There are three options available; government, building societies and insurance companies.
The government offer The Enterprise Finance Guarantee. It is available to small business start ups that would not normally qualify for a loan. They will guarantee a certain percentage of the start up costs for new businesses. This amounts to a maximum of £50,000 to small or medium sized businesses that have a credible business plan but have been refused bank finance.
You can find out more details about these flexible finance solutions by visiting the Businesslink Website.
Finally there is the option to approach Insurance companies or building societies. As these organisations do not possess banking licenses they do not take deposits or offer facilities that a bank will, such as on overdraft, but the upside is their lending criteria is less restrictive.
Here at Monkey Puzzle we aim to assist you in securing finance for your own nursery franchise. With our track record as one of the UK’s leading nursery franchisor we have forged good relationship with some of the leading high street banks and with their knowledge of our track record they are more inclined to assist with funding our potential franchisees.
If you are interested opening your own Monkey Puzzle Day Nursery franchise and want to find out exactly what we can do for you why not register for our free franchise information pack, or if you you have any questions you want to ask directly, simply get in touch!
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Monkey Puzzle News
Monkey Puzzle Day Nurseries Ltd
Herts, HP4 2UB
Telephone: 01442 878887