Financing a Franchise in 2010
Joel Caws - Technical Director, Select Your Franchise
Recent news shows that demand for consumer credit rose in December 2009. This is not altogether unexpected since many will use their credit cards and such like for buying gifts for Christmas. Spending may have been further fueled by the VAT increase in January which may have prompted those considering purchasing larger items to purchase early and make the most of the VAT saving. Nevertheless, most experts are claiming 2010 will be pretty static in terms of the housing market which is generally quite a good indicator when it comes to consumer confidence. The bank rate is also widely predicted to stay at its record low point for some time.
Its clear that there is money still out there and banks maintain that they are happy to lend, albeit much more thoughtful and considered lending (which isn’t a bad thing in my opinion). The good news is, for anyone thinking of investing in a franchise in the UK, banks have finance more readily available since a franchise concept is generally one that has been proven to be profitable.
It’s worth checking with your local high street banks before seriously considering a franchise, as they can let you know what your options are with regards to financing and also give you an idea of the upper limit they would be willing to lend to you. This will then form part of your search criteria that will give you a short list of options.
Most franchise directory websites include a search tool that will allow you to view only the franchise opportunities that fit within your budget. To get an idea of how this works, you can try the blue ‘Franchise Search’ selector on the right of this page. Simply select the amount of capital available and click ‘Search’. You will then see a shortlist of matching options which match your criteria.
Tags: franchise, Franchise Finance, franchise opportunities, joel caws
