Are there loans designed for franchise businesses?

Yes, there are available business loans for franchise businesses. These loans are designed for the unique needs of establishing, operating and expanding a franchise. Franchise loans can be utilised for almost anything to start a franchise such as: franchise fees, equipment purchase, inventory, marketing, working capital.

Franchises can find financial possibilities like: term loans, working capital loans or government micro, small, medium enterprise (MSME) loans. For example, some government funded programs provide funding for franchise businesses, with fewer documents, and eligibility and reporting requirements, flexible repayment terms. Most government loans for franchises add to startup costs, also have ongoing operational costs.

Eligibility for franchise funding is mostly based on the franchise model, business plan, applicant credit rating, and implementation based on the franchisor's requirements. Lenders will likely also look at the franchise brand, with regard to its reputation and historical success, as part of their decision.