£50m lending fund for franchise purchase
January 25th, 2017
Franchise Finance reveals that a dedicated £50 million fund has been launched this month for existing and prospective franchisees.
The funding will provide unsecured lending dedicated to the franchise sector and the fund is accessible exclusively through Franchise Finance.
As with all lending applications, applicants will need to be credit worthy for their specific requirement and interest rates will depend on the assessed risk, amount required and term of the loan, but generally you will be looking in the region of 7% to 9%.
Applicants will still require an element of personal contribution when seeking funding via this fund. Funding up to 80% may be available, but again this will depend on the assessed risk, strength of the franchise business, amount and term of the loan.
The fund is available to both start up franchisees as well as existing franchisees looking to grow/expand their franchise business.
Fund available for lending between £5,000 and £500,000 and includes loans, HP and asset finance deals. We can structure a deal to cover all areas of the start-up costs, within the fund.
At this stage, loans cannot be processed for amounts under £25,000 for sole traders or partnerships (i.e. Regulated Loans). Applicants must be trading as a Limited Company
Applicants will need to be homeowners. No tangible security required, just Unsupported Personal Guarantees.
Maximum term of any loan is 5 years
No capital repayment holiday available under the Fund.
Credit decisions typically conveyed within 48 hours of receipt of a completed application.
No Arrangement fee for lending, although documentation fees in region of £250.00.
No requirement to use Franchise Finance Business Plan Service, we can use franchisees own Business Plan if it provides all the required information for the lender.
Find out more here
Franchise Finance Limited, Sanderum House, Oakley Road, Chinnor, Oxfordshire, OX39 4TW - telephone 01844 355575