Franchise Lending

Buying into a franchise can be an extremely lucrative investment. Early adopters or purchasers of a well positioned franchise are often able to achieve strong financial returns by buying into a proven system for income generation. However, the initial capital outlay can be large – both in the set up and fit-out of the franchise, but also in the fees paid to the franchisor. A Franchise Loan can help finance these initial costs and lessen the burden on your own funds or assets.

Financing Your Franchise

What can a Franchise Loan be used for?

A Franchise Loan can be used to:

  • Start or purchase a new location
  • Fit-Out, refurbish or extend an outlet
  • Purchase an existing franchise business
  • Leverage off equity in an existing franchise business to purchase a new site
What is an Accredited Franchise?

An Accredited Franchise is one which a bank has vetted as having a proven system and where the financial returns of the business can be estimated with some level of certainty. This allows the bank to attribute value and standard policies to the business even though it may not have started trading yet.

A list of franchises can be found on the Australian Franchise Registry – http://www.thefranchiseregistry.com.au/. However, not all franchises are bank accredited (the vast majority are not) and it is important to check as part of your loan application process.

Franchises which qualify for bank accreditation are typically businesses which transact in cash, carry no debtors, and require an initial investment of greater than $250,000 or more.

WHO TO TALK TO

Need professional advice on Franchise Lending?
These are experts to get in touch with.

Tommy Lim
Managing Director
Will Li
Commercial Director