The basics of applying for finance
You’ve got to start off with a basic business plan before applying for finance. It will be a prequisite for most financial institutions, and some may also request a cash flow projection. In regards to your own equity, as a rule of thumb, 50 per cent will be required. In bigger franchise systems, the risk will be seen to be less, therefore the financier may accept a lesser equity level from the franchisee.All the banks will say, and they’re probably right, that funds are available but when you have an economic situation like we have seen the past year they become more nervous. What this means for investors is that one needs to tick all the boxes to get a loan for anything – it doesn’t matter if it is a home or business loan. If previously they only ticked 80 of the 100 boxes, now they are requiring that you can tick all of them. And it is a reasonable stance. If you can’t tick all the boxes, you need to ask yourself why, and what can you do to fix this.
Different lending options… carry on reading this article.