Bank payoffs – franchise departments focus on lending
While the media and public rage against the large bank payoffs that seem to be rewarding failed executives, the franchise departments, of the leading lending banks in the UK, are keeping their focus on helping franchise businesses lend and grow.
Attendees from HSBC, RSB and NatWest franchise depatments have all assured delegates at British Franchise Association forum meetings this year, that their departments are very much open for business and lending. However, the banks are making it quite clear that any approach for lending will met with a cautious eye.
Banks are now, more than ever, requiring a very robust business plan to support franchise lending requirements. The business plan, provided by the aspiring franchise buyer to the banks, must demonstrate the buyer’s understanding of the franchise, market and local competition. The plan must support any income prodiction claims with clear local research evidence. Off the shelf business plans provided by franchisors will almost certainly be knocked back by the banks.
In addition the banks look very closely at the frachisor. What is the bank’s relationship with the franchisor and its franchisees? What is the current and historic financial performance of both franchisor and franchisees from the banks own experience? British Franchise Association membership helps but is not the only criterion being considered by the banks when considering leanding to franchise buyers.
The franchise department’s of the banks are working with the governments new Enterprise Finance Guarantee scheme – EFG – that replaces the Small Firms Loan Guarantee scheme. Via the EFG, lending can be provided by the banks, and underwritten by the government. Sums available are up to £1,000.000 under the EFG scheme. However, the banks must agree to award capital under the EFG and at least 25% of the franchisee’s capital requiremnts must be provided or secured by the franchisee.. For more information, provided by the HSBC franchise department visit – http://www.selectyourfranchise.com/franchise-blog/?p=401.
Tags: banks, finance, franchise business, lending
Vodafone job cuts – franchise business could be the way forward for those affected
Vodafone has announced plans to cut about 500 jobs in the UK in an effort to reduce costs.
Vodafone, the world’s largest mobile phone company by income, is shedding jobs as part of previously-announced plans for £1bn ($1.4bn) of cost cuts. Vodafone, which employs 10,000 workers in the UK, faces rising raw material prices and increasing competition. The 500 job losses include 170 posts at Vodafone’s head office in Newbury, Berkshire, in back-office type roles. All the group’s operations are set to be affected, including a reorganisation of some of its call centres – http://news.bbc.co.uk/1/hi/business/7907336.stm?lss.
Vodafone job cuts – Franchise opportunities
Clearly the job cuts is not good news for Vodafone or its staff. Valued workers that may have met targets for years could still find themselves being made redundant. However, leaving the workplace with the knowledge that you are an achiever, and with redundancy capital, can in some cases be a blessing in disguise.
Franchise opportunities open new horizons
Many people entered self employment via franchise business during the last recession. It resulted in an improved lifestyle and better income for many. For people leaving Vodafone franchise business could be the way forward into a better and more lucrative self employed future.
Success in franchising
Over 90% of UK franchisees trade profitably according to the 2008 British Franchise Association/Nat West national franchise survey. There are over 34,000 self employed franchisees in the UK that are supported by over 800 franchisors. The franchisor is the brand owner that has proven the brand. The franchisee follows the proven brand system and builds their profitable business by the system. Franchise business contributed over £12 billion to the UK economy in 2008 growing five times that of the United Kingdom’s GDP.
To discover more about UK franchising and how you could be involved visit www.SelectYourFranchise.com
Tags: franchise business, jobs, Vodafone
Bank finance franchise owners benefit
Positive news about bank finance for franchise owners and buyers continues to come from UK banks. With over 90% of franchise owners declaring profitable trading, and over five times the growth when compared to the UK GDP, it is little wonder that the banks favour the finance of franchise owned businesses. Stats taken from the Nat West/British Franchise Association (BFA) survey 2008.
The UK property lettings franchise market is one sector that is enjoying favour with bank finance according to Mike Goddard, Chief Executive of Belvoir and BFA Chairman.
According to Belvoir falling property sales continue to boost the rental market and Belvoir, the UK’s largest specialist lettings agency, has recorded an impressive 25% month-on-month increase on its 2008 figures, providing an excellent investment opportunity for prospective Belvoir Franchise Owners.
Chief Executive Mike Goddard, who is also Chairman of the British Franchise Association, says: “We are delighted with these figures. It is important that everyone is aware of these exciting developments in franchising so that the banks can continue providing their very high standard of service to potential Franchise Owners.”
Banks such as NatWest, RBS and HSBC support investment in franchisesand are happy to arrange financing for prospective Belvoir Franchise Owners who meet their criteria. Loans of up to 70% are usually available but arrangements can be tailored to meet individual requirements and a decision over financing can be received within 72 hours, and funds released in just six to ten weeks.
Graeme Jones, Head of Franchise for NatWest and RBS says: “The growth of Franchising continues to gain momentum, and the latest NatWest/bfa survey reveals that the industry is now worth a record £12.4 billion. As the leading banks for the Franchise sector, our network of franchise managers are always keen to talk to good quality franchisees/franchisors to discuss their ambitions for growth. We would definitely include Belvoir in this category, since it has a very successful and proven franchising concept.”
This news is good for eveyone involved and considering being involved in busienss format franchising who may require bank finance.
For more information on the Belvoir Franchise Opportunity visit -http://www.selectyourfranchise.com/uk/franchise-features/Letting-Franchise-UK-Belvoir-the-lettings-specialists.html.
For more information about franchise opportunities across all sectors in the UK visit – http://www.selectyourfranchise.com/
To franchise your business visit – www.Franchise-Consultants.co.uk
Tags: Bank, finance, Franchise owners
