Owning and running a franchise business is something many people aspire to do. The benefits of owning your own business are vast – from affording more flexibility in terms of balancing personal commitments with work to the freedom that comes from being your own boss.
Unlike with starting your own business from scratch, buying into a franchise gives you access to a clear business model that is already established and successful. This is not only extremely reassuring, but it also means that you are provided with the necessary materials and training to get started easily and quickly.
One thing that puts people off starting a franchise is the initial deposit that is required. In this post, we discuss one of the most popular methods of franchise funding: taking out a business loan.
Types Of Business Loan
Business loans allow you to borrow a set amount to cover the total needed to make your initial franchise investment. The repayment terms will vary depending on the bank that is providing the loan and the type of loan and the conditions it comes with.
Interest rates are usually fixed for the life of the loan, and should not increase as long as you keep up to date with your payments.
There are two categories that business loans fall into: secure and unsecured. A secured loan allows you to borrow money using an asset for security. In this case, if you fail to pay back the money according to the payment terms agreed, the lender can use the asset to get their money back. In an unsecured business loan, you are not required to provide an asset to secure the loan.
Here you can find more information on the different types of business loan.
How To Get Funding To Start A Franchise With A Business Loan
First off, you will need to choose a loan you would like to apply for, and then check that you qualify.
Once you have decided on a loan, the next step is getting your finances in order and making sure you have a good credit score.
You also need to create a business case and do some market research to support your case for when you have your meeting with the bank. As Time For You is already a successful franchise, with multiple past case studies and a proven track record, this is normally a smooth and quick process.
Advantages Of Using A Business Loan
Simple application process.
You can borrow between £1,000 and £3 million.
Benefit from lower interest rates, compared to other types of loan.
You choose to pay back the loan over your preferred period; this could be anywhere between one month and 15 years.
Time For You is a successful cleaning franchise with head offices in the UK, Ireland, Australia and Norway. We will support you with an extensive training package to build a successful franchise, helping you put money towards a mortgage, retirement or any goal that you want to work towards.
Call us today to find out more about our franchising opportunities.
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