Because our team of financial professionals come from a range of commercial backgrounds, we can call upon our vast pool of knowledge to best advise you on the challenges facing a franchise owner, from the specific set of requirements from the franchisor to the length of the contract and terms they are offering you. It is advisable to get these terms as advantageous as possible before approaching a bank for a loan, reducing the risk of any nasty surprises down the road.

The degree of autonomy you will have, or lack, should also be considered before deciding to commit fully to the franchisor. It is also worth considering the fees that your franchisor charges, as well as the level of promotion and advertising they are promising.

Whereas other loans are purely dependant on your financial health and situation, a franchise loan requires the lender to vet the franchise you are interested in, vetting the average turnover and profit margins of your desired franchise venture, as well as projecting the sales for your site and how royalties will be distributed.

The performance indicators on the franchise depends on what your financial institution consider to be key indicators, and will vary from lender to lender. Purchasing a franchise differs quite a bit from a stand-alone business, and is more akin to buying the security of a full-time job than it is going out purely on your own, which makes banks view this prospect favourably. In some instances, you can even secure a 100 percent of the loan required by the franchisor with a bank.

If you are considering attaining financing for a franchise, Australian Capital Lending can help you secure the funds needed to begin your venture. Utilise our knowledge of the franchising market by contact our team of professionals today!