Thinking of buying a franchise? We are here to help.
Buying a franchise can potentially be the most financially rewarding decision you ever make in your life but how easy is it to get a loan to buy one? The great news is that franchise businesses are seen as a stronger model than other businesses so this already puts you on the front foot in getting approved for finance.There are a number of franchises that are favoured by a few of our lenders but we can line you up with the bank that will offer you the most favourable terms and allow you to borrow up to the maximum Loan to Value Ratio (LVR) for your situation.
How does a franchise loan work?
Franchise loans work very much in the same way as a standard business loan with similar features and commercial interest rates. The biggest difference is that you can generally borrow more against the value of the business than if you were to buy a similar-sized non-franchise business in the same industry. Because of this, you don’t need as big of a deposit or use as much equity in an existing residential property as security to complete the purchase.