A new lending fund has been made available to existing and prospective franchisees that are looking to enter the franchising industry or expand their current business.
It is hoped the fund could lead to even further growth in the UK’s franchising industry, following an announcement by the British Franchising Association’s (BFA) in January 2016 that activity in UK franchising had reached in all-time high.
In terms of franchising’s employment figures, a record 621,000 individuals now work for a total of 44,200 UK franchises, and the industry was valued at £15.1bn to the UK economy in annual turnover in 2015.
Responding to the franchising industry’s achievements, BFA director general Brian Smart hailed the ability of the business model to succeed “in good economic times and bad”.
Franchise Finance, the franchising lender behind the fund, will offer loans of £5,000 up to £500,000 to existing franchisees as well as new entrants looking to buy into a franchise.
Loans will be expected to be repaid over a five-year period, and Franchise Finance has claimed that the fund will improve current finance opportunities for franchisees. It has stated that applicants can expect a credit decision within 48 of application submission.
Money will be provided to applicants by a “highly regarded global finance organisation”, and will include lending for loans and equipment leases, as well as hire purchasing, giving recipients a defined period to pay off an asset.
Commenting on the new fund, Franchise Finance business development director Chris Roberts said that the company would be able to support “many more people to achieve their long-term retail goals” within the franchising industry.
“This fund promises to transform thousands of franchise businesses across the UK. All too often we see access to sufficient finance as a barrier to growth.
“Because this fund is specifically for the franchise market, such frustrations are set to be a thing of the past for ambitious franchisees with strong business plans,” he said in a statement.
Franchise Finance is regulated by the Financial Conduct Authority and is a member of the British Franchise Association. It claims to have over a 95 per cent success rate in raising finance for people looking to grow their business.
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