Financing your Franchise: Are the banks really open for business?
Thursday 30th August 2018
Undoubtedly Banks are open for business, providing the proposition they are assessing has been correctly thought through and presented by way of a professional and viable business plan.
This means not only that the plan has to show how the money is going to be used, and how and when the borrowing is going to be repaid, but also a host of other important things. For example: the personal finances of the owner/s themselves, recent and up to date trading accounts (if the business is already trading), the basis on which the financial projections have been prepared (i.e. providing some evidence to back up the assumptions), and some comment on the market and the competition, explaining why the business is going to be competitive.
Bankers will always be looking for ‘a safety net’ in case things don’t go according to plan so it’s a good idea to cover this if you can, e.g. that you or someone else can invest more funds if absolutely necessary. That’s also why banks sometimes like to have security. However, if you do not have any available (e.g. sufficient equity in your house) then the Government’s Enterprise Finance Guarantee Scheme may come to your rescue.
Chris Roberts runs a series of one to one and group courses and Franchise Finance also prepare full business plans and/or financial projections for their clients.
For tips on writing a business plan to help you secure finance, have a look at this article.