Franchising industry receives further boost with announcement of 50m fund
A new lending fund has been made available to existingand prospective franchisees that are looking to enter the franchising industry orexpand their current business.
It is hoped the fund could lead to even further growth in the UK’s franchising industry, following an announcement by thebritish 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 workfor 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.
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
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