Any successful franchise will need to embrace growth periods. When success has been achieved and the franchise is performing well it can be easy to relax and settle with what you have. However, a franchise should actually embrace the growth periods and keep pushing for future growth, why stop when business is good, instead make it even better.
Often the area that can really help to facilitate further business growth is with a boost in cashflow. This is where the importance of a well-crafted business plan is crucial. It can help to determine the best areas for investment purposes. It will also help the franchise to remain accountable and on track in terms of its objectives.
When plans are finalised and the franchise knows what strategies they will deploy to continue in their growth journey, next is to identify the funding they will need. The most common solutions are:
Asset finance – enabling the purchase of machinery, vehicles and renovation of property. Solutions can include leasing, hire purchase and leaseback with flexible terms and repayment structures.
Invoice finance – ideal for boosting cashflow as money initially tied up in invoicing and long-term payment terms is eradicated. Also known as invoice factoring and invoice discounting, a franchise can be paid as soon as an invoice has been raised and issued.
Commercial mortgages – utilised for purchasing any type of commercial property which includes restaurants, food outlets, shops, retail outlets, warehouses, and medical establishments. The funding is secured against the property being purchased.
Open credit line – a single agreement which allows a franchise to secure a line of credit which can be used at the discretion of the business. The agreement is an open-ended loan that be used over an agreed period. The agreement ends once the line of credit and been fully repaid.
The NGI franchising team have extensive knowledge in helping to secure funding options for business growth purposes. With such an array of options available we help our clients to match funding to their specific needs.
If you have any questions or would like some help with securing finance for the growth of your franchise, please call us on 01993 706403 or e-mail hello@ngifranchisefunding.co.uk.