If you don’t have finance to start a business, it doesn’t mean it’s the end of your dream. You may be eligible for finance through major banks, franchise finance providers or even the UK Government start up loan scheme.
So how do you increase the likelihood of them borrowing money to you?
Know exactly what you need to borrow
You’ll need to gather all of you personal expenditure and funds to know exactly what you need to borrow and what you can afford to pay back. It’s important to also consider the future and any impacts your financial situation might face. I.e. are you thinking about moving house, starting or expanding a family? Any other large costs that could hinder you packing back your loan. It’s not a good idea to get in to financial difficulty as most franchises won’t accept individuals with a poor financial history.
Tidy up your finances
As part of the application process borrowers will ask for bank statements and for a credit check. It’s a good idea ahead of this time and throughout it to avoid any unnecessary or habitually spending. Any patterns or anomalies could raise a red flag to lenders and stop, or delay the process.
All finance providers will ask for a business plan. This is effectively proof that your business model and plans will achieve a turnover that can pay towards your debts at the rate at which you are asking to borrow. That said, the business plan is also a great tool for when you are in business to follow and to work with throughout the challenges that business brings. It should include operational, competitor, staffing, sales, marketing and general information around your new business plans.
Did you know that we can help you to create your business plan?
Finally, as a conciencous franchisor, we do help you with the finance process if you wish to borrow funds. We can discuss with you the wide range of options so that you can make an informed decision of who you’d like to approach for your borrowing requirements. Any help along the process, we are there.
If you’d like to discuss financing a ServiceMaster Restore franchise, contact us on 0116 275 9005 / firstname.lastname@example.org