franchise funding

antbann

hi,

can any 1 help me with franchise funding, i am wishing to purchase a franchise but im worried about putting my house up for security any 1 got any other idea's?

jonesMUFCforever

A business banker may think that if you do not have the confidence to provide security for the loan why should the bank take all the risk?

How much do you want to borrow - do you have anything to put in yourself?
Does the franchiser provide the finance?

antbann

yes i have 10k to put in and i want to borrow 20k?

its just i have 3 young kids under 4 so just worried.

Bob_the_Saver

Then don't do it unless your prepared to take the risk. Without giving anything away what sort of business opportunity is it?

antbann

its a cleaning franchise that has be established 25 yrs and has a good relationship with hsbc bank that i am supposed to see they bank with them and they know the company. :eek:

Bob_the_Saver

Have you talked to other franchisees RECENTLY to see how business is now. I have a friend who worked for a well known cleaning company (houses not offices) who set up on her own and has never regretted it. A good living for herself, doesn't want to expand. You can do a lot of advertising and promotion work (yourself) for what you are thinking of investing. Depends a lot on the area and what your goals are.

antbann

i have yes they all said best thing ever and v busy but its just the setting up that's the scary bit

Bob_the_Saver

antbann wrote: »

i have yes they all said best thing ever and v busy but its just the setting up that's the scary bit

Well if you decide to go ahead good luck.
Remember you only get out what you put in, it's not like 'having a job'.
:T

hummy

When i was researching franchises and franchise funding i had a chat with Natwest who have a specialist arm for Franchise Funding. They claimed that if you can put up a third of the money they will finance the rest with security. I mentioned i had no security and suggested that providing they are happy with the franchise model and business they could look to process the application under the Enterprise Finance Guarantee scheme where the government provides security for 75% of the value of the loan. Maybe that is something that is worth investigating.

ILW

What do you actually get for £30,000?

chalkie99

ILW wrote: »

What do you actually get for £30,000?

A mop and bucket and lots of smooth sales patter :D

Seriously though, have a look at this thread in the Small Biz forum:

http://forums.moneysavingexpert.com/showthread.html?t=1903813