There are plenty of loans and franchise funding available for starting a new business, and lots of information about these opportunities are available online.
Chances of approval are severely decreased if the company has a limited trading history and a lack of capital or collateral to offer in repayment. However, business owners can get start-up loans from many traditional lenders such as banks, online lenders, and credit brokers, making it a little easier to find one that suits individual needs. Newer businesses can find it challenging to be approved and secure funding because they are considered ‘higher risk’.
When you investigate buying a franchise, check that they have a good, proven business model which will be favourable to funding providers. Many reputable franchises will have already done their research and partnered with an excellent loan provider, to make the process smooth for new franchisees. At We Love Pets we have partnered with a reliable government-backed loan provider with a pre-approved business model to help things run a little smoother. And what’s more, we have a 100% success rate!
Banks and loan providers have numerous funding options available for franchise opportunities, meaning you will be able to find an accessible loan that suits you. Keep in mind that most franchise loans are different to the regular start-up loans you can apply for online. When you research your funding options, your potential franchisor will be able to help guide you through the process.
- Loans from British Business Bank is a government-backed loan are designed to help start and grow your franchise business. They have schemes such as Biz Britain; our business is a pre-approved model here, which means that your application is guaranteed to be approved (subject to credit checks).
- HSBC offer franchise loans to new franchisees through their franchising scheme. Their expert team will help guide you through the process when you book a meeting with them.
- Lloyd’s bank offers a comprehensive franchise loan for new franchisees. Like HSBC, you can book a meeting with them, and they will talk you through the process.
There are several other options you can look at when considering funding for a franchise. If these are unavailable to you, you might wish to try a loan from friends or family, who might offer the money in return for a share of the profit or even being a partner in the business. Crowdfunding is also an option for sourcing finance for a franchise. If it will benefit your local community then your community may offer some support with money.
When you buy a We Love Pets franchise, we will help you create a solid business and financial plan, breaking down how many customers you need a month to cover costs and turn a profit. Financial planning is an essential aspect of any business, and having a plan is incredibly important to business success. Our fantastic head office team helps create a strong plan for you and your location to help you kick-start a successful pet care business.
This is not financial advice – loans and finance should always be discussed first with your bank and financial professionals.