The New Year is a great time to consider starting something new, and 2011 will see many individuals across the UK consider starting their own business. However, financing a new business is often the biggest hurdle facing many potential franchisees, and even though many franchises offer great deals on their franchise opportunities, securing bank financing can still be a challenge. Our information centre features a number of articles on funding a franchise, but below I’ve also prepared a number of resources to help you educate yourself on options available to you when financing a new business start up.
Government Initiatives for Small Businesses
The Enterprise Finance Guarantee: Available to small business start ups that would not normally qualify to get a loan, the government have pledged to guarantee a certain percentage of the start up costs for new businesses.
Small Loans for Business offers loans of up to £50,000 to small and medium-sized businesses that have viable business plans but have been refused bank finance.
Finance for Business offers flexible finance solutions such as loans and equity finance for businesses with viable business plans that are unable to get support from commercial banks and investors.
More information is available on the government Business Link web portal: http://www.businesslink.gov.uk/bdotg/action/home
Many, mostly larger, franchises offer financing direct to their franchisees. As you explore our directory of franchise opportunities, it will be clearly indicated in the top part of the profile if the franchise offers a direct financing option.
As always, it is important to consult with an accountant and legal representative before agreeing to any financing terms with a franchise.
Third Party Financing
NatWest, our featured financial institution on Franchise Direct, also offer a range of franchising options to potential franchisees, watch the video below to hear from NatWest’s Mark Scott about financing your franchise start up in 2011:
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