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Franchisee loans

Is there an alternative to a bank when sourcing a loan to buy a Franchise? I have seen that they want a lot of capital before they consider lending, which isn't an option for me.

Comments

  • It is essentially a business loan, and they would need to see a business plan and some capital before you went in. Not many investors would consider fronting the entire sum needed for your business - not without a significant share ownership arrangement.

    You are generally expected to invest some of your own money in a business.
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!



    May grocery challenge £45.61/£120
  • No sensible bank or other investor will lend money for a new business (franchise or otherwise) without a combination of a) security and b) capital put in

    So if you are not able to prepared to put your house/shirt on the line and/or put in a big % of the equity yourself, it is not going to happen.
  • Asking the same question on more than one board is not a good idea.
    My reply is on the other board.
  • MEM62
    MEM62 Posts: 5,153 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I don't think any financial institution is going to lend you money for a business that you are not prepared to put your own money into. As well as a solid business plan you will need to show your commitment to the business by laying some of your own money on the line.
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