"Financing projects from £50,000 to £100 million"

Franchise Finance

Whether you are an experienced operator or a beginner we can fund up to 70% of the purchase cost of an established franchise, or 50% of the start-up cost of a new one. Tell our experienced team what you want!

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No Obligation - Free Quote

CFG Offer

Some lenders have a particular appetite for lending to franchised businesses. Evidence suggest there is a lower failure rate among this type of business, though that is not to suggest that all franchises are successful.

The cost of taking up a franchise will vary according to the nature of the business and the size and location of premises, if required. Lenders will generally lend 70% of the funds required which may include:

  • Start-up costs including the franchise fee
  • Freehold Premises
  • Fixtures and Fittings
  • Goodwill (if it is an existing business )
  • Stock
  • Working capital
  • Lease Premium ( lenders will only lend to 50% max if there is no freehold security available)

Repayment of a term loan will normally be on an amortising basis over 15 or 20 years, but a capital repayment holiday may be available, depending on the profile of the business, for the first 2 or 3 years so that you are just covering the interest costs to make payments more affordable in the start-up phase.

If lenders refuse to offer you finance it may be possible to take the project forward with a guarantee under the new government Enterprise Finance Guarantee scheme, which is open to many more businesses than the Small Firms Loans Guarantee Scheme it replaced.

Any proposal will need a convincing business plan backed by your own financial resources to the fullest extent to succeed. We will assist you in getting your proposal to the required standard.

The eventual financial package will usually be made-up of different types of facilities (term loan, overdraft, equipment leasing, etc.) to suit the particular requirements of each franchise scheme.

No Broker Fee (if loan amount is £1million+)

You will NOT pay a broker fee for our service if your loan amount is OVER £1million. If your loan amount is below this £1million we charge a broker fee to cover our administration costs . In cases where the broker fee is charged, it is payable in full on presentation of a suitable loan offer in principle. NO charge will be made if we are unable to source a loan. Our charging policy is based on our receiving a commission from lenders. Where it is in the client's interests that we use a lender who does not offer us a commission we will charge an additional 0.5% of the loan amount. We do make an initial £100 charge in all cases, to cover our management time in assessing and preparing each case. Our minimum loan is £100,000.

Please see our table of fees below:

Our Fees
Loan Amount Broker Fee Charged
£100,000 - £500,000 1% of loan amount
£500,001 - £999,999 0.5% of loan amount
£1million+ FREE - No Fee Charged

Contact Us

  • Call 0116 298 7344 for assistance

Features

  • Bespoke finance tailored to your needs
  • Term Loan- up tp 15 years
  • Overdraft
  • Equipment Lease
  • Commercial Mortgage - up to 25 years

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