Sometimes, to assist with working capital, there will be a need to quickly secure a loan for your franchise. With so many lenders available it can be a minefield knowing which direction to turn. Preparation in these situations is key to a successful application.
Prior to securing the funding there are considerations that a franchise business should make:
- When is the funding required?
- What type of finding is required?
- Are the franchise accounts and financial data accurate?
- Why is the funding needed?
Having the answers to these questions immediately will save time from the outset.
Another important decision will be with the type of loan. Do you opt for secured or unsecured funding? Secured funding will enable you to apply for a large loan amount but in return you will have to use a business asset as security. Non secured funding does not require any security in the form of a business asset but generally loan amounts are smaller in value.
With a decision on the type of funding made there are some important documents that should be collated:
- Business plan
- Financial statements
- Credit history
- Security
- Personal information
Before speaking to any finance professional preparation is key. Know what you want, know why you need it and prepare all the relevant documentation. If everything is readily available, you could be able to secure finance for your franchise in as little as 24-hours.
If you need some help, then we have a team of experienced franchise finance specialists ready to assist. Please call us on 01993 706403 or e-mail hello@ngifranchisefunding.co.uk.