Franchise for sale coffs harbour

What are your financing options to pay for your franchise?

business for sale Adelaide

What are your financing options to pay for your franchise?

Franchising is a crucial investment but franchisees who are short on capital should not be discouraged. With a little strategy, you can find the right mix of funds that will help you own a franchise. In this article, let’s deep dive into the different ways to get finances for your capital.

Whether you’re just about to commit to buying your first franchise business or you’re a seasoned franchisee, finance is going to be a crucial requirement when opening your location. There are several ways to obtain financing for your franchising journey. Having a greater understanding of finance will put you in a better position in making decisions and dealing with the initial steps of franchising.

    • Liquid Capital
      In finance, the term liquid capital refers to money that is readily convertible into cash. It is often used as a synonym for working capital. It can be some assets that you can leverage like home equity or cash infusions from family or silent investors. Or it could be your personal savings that you can withdraw immediately. The main essence of being liquid is that you have cash on hand that you can readily provide as capital for your business. In this case, you don’t have to loan money anymore.
    • Traditional or SBA-backed Loans
      Small bank loans can be obtained from banks and credit unions, which are typically smaller than traditional banks. These lenders usually offer a lower interest rate than larger lenders because they believe that their customers will be more likely to pay back their debts in full. They also tend to offer less expensive services than larger institutions such as credit unions or banks, so it might be worth considering applying for one if you are looking for a small loan.
business for sale Melbourne
business for sale Perth
    • Leveraging of assets to self-fund
      There are two ways to leverage assets to self-fund. First, is by loaning, and second is by cashing out your assets. Leverage itself is an investment strategy where you use borrowed money from the bank or from your property. If you want to get money from your properties, you can either mortgage or sell them out. However, take note that leveraging assets can be quite tricky. Since you’re investing the money for business, you are expected to return the capital once you earn revenue. Hence, when you start making sales monthly, a portion of your sales must go for loan payment so you can get your capital back.
    • Partnerships with other funders
      Another way to generate funds for capital is through partnerships. A partnership is a legal form of business where partners contribute property, money, or labor to form a partnership and share profits. This is an ideal way to get money if you want to have the capital for your business but do not have enough funds. This decreases the burden of having to shoulder the capital alone. You can form a partnership with your friends, colleagues, and other family members where you put up capital on the condition that you will pro-rate the profits later on. Another way to obtain partnerships is through other funders. However, most franchises will require any shareholders to sign the franchise agreement as a legally binding commitment.
  • Credit Cards
    Credit cards are usually the easiest option for getting money but it’s more ideal for buying additional supplies for your small-scale food business. The good news is that most credit cards offer a flexible loan repayment term. Take note, the amount you can obtain is based on your credit limit, which is probably less than you could get from your bank.
  • Venture Capital
    Like angel investors, venture capitalists take equity in your business in exchange for financing. Venture capital funds represent mutual funds usually pooled from different other investors. In the same way that different business individuals can form a partnership, companies can form a venture to put up a fund for business investments. Think about how much money you need and what you’re willing to give up in exchange for the funding. This will help you decide the best way to forward with your franchise.
Business for Sale Gold Coast
Business for Sale Sydney

Western Australia

Western Australia

Western Australia

Northern Territory

Northern Territory

South Australia

New South Wales

New South Wales

Australian Capital Territory

Victoria

South Australia

South Australia

South Australia

Tasmania

Queensland

Queensland

We Have Franchise Opportunities In
Every Australian State!

With franchises across Australia, we have opportunities available to Franchise Partners across the country! If you’re looking for a new and exciting business venture with the support of a national company, you’re in the right place. Learn more about our Franchise Opportunities or get in touch to learn more today

Our Affiliations

Enquire Today

Franchise for sale coffs harbour

Submit Your Franchise Partner Enquiry!

Scroll to Top