Running a successful franchise can be incredibly rewarding but in order to maintain maximum efficiencies you have to rely on high performing equipment. For example, if you have a fast food outlet you need fridges/freezers, cooking equipment, tills with the latest technology, screens, comfortable and hygienic furniture, air conditioning and ducting. Or if you provide a home delivery service then you need vehicles which are efficient and cost effective to run.
It will often seem that no matter what type of franchise you own there is always something that needs replacing or upgrading. There are some important items to consider when you purchase new equipment.
Speak to specialists
Whether you are looking at purchasing new equipment, investing in a second vehicle or simply want to employ more staff speak to the specialists in their field. Of course, research the options first but then seek specialist advise to make sure that the future purchases you make are going to be 100% right for your franchise
Explore all the financial options
Don’t just settle for the first funding option you find. Often the purchase will be a significant investment for your franchise so make sure that you seek the right financial help. Typically, we would speak directly to our bank and look to utilise their services. However, by exploring the market and speaking to an independent broker they will be able to find you the best deal to suit your franchise without adversely affecting your cashflow. Also, you won’t then get restrictions added by your bank should you need extra support from them such as improved overdraft facilities.
Flexibility is key
When you have spoken to the specialists, found the equipment you need and the financial options that suit, make sure you have some flexibility. You would never commit to employing staff for 5 years and paying them upfront for the whole duration so you should take the same approach when buying new equipment. Make sure payments are structured with some flexibility so you can make overpayments or pay for the debt sooner than originally planned.
If you would like to find out more about the best financial options for purchasing new equipment, then we have a team of experienced franchise finance specialists available to help. Please call us on 01993 706403 or e-mail hello@ngifranchisefunding.co.uk.