Government ‘Start Up Loans’ For Franchise Businesses
When looking at franchising as a business option, raising the appropriate finance can be a barrier to making the next step. In some cases, using your own money might be possible, but it is likely you’ll need some cash injection to get your franchise up and running. The Government’s ‘Start Up Loan’ scheme is now available to those looking to own a franchise business. Great news for prospective franchisees.
The UK Government is supporting individuals who wish to start their own franchise by offering funding under a ‘Start Up Loan’ scheme. Countrywide Signs has teamed up with an expert finance broker who has a 90% success rate in getting franchisees access to sufficient funding to purchase a franchise and start trading.
Rob Dancy at The Franchising Centre commented on the start-up loan option for buying a franchise: “We have found this scheme a real game changer for the people we advise and the franchising sector as a whole. It is a great way to help bridge the gap as what would usually hold people back from investing in a franchise for themselves. Ultimately upfront capital is a limiting factor. With a 90% success rate on applications, it is an option well worth investigating.”
How the Government scheme works:
- You can apply for any amount from £500 to £25,000 to start your business.
- If the business has two owners (e.g., business partners or a husband-and-wife team) then both parties can apply. This then doubles borrowings to potentially £50,000.
- This is a personal loan which you use to get your business up and running however it is ‘unsecured’ meaning that you are not putting your property at risk (as is the case with many loans).
- The rate of interest on the loan is 6%.
- You have a period of between 1 year and 5 years to repay the loan with no early payment penalty.
To summarise you now have an opportunity to access funding without having to put any of your own money in initially and without putting your property (or even without owning a property) at risk.
How to Qualify for a Government Start Up Loan
As with any loan, you will need to meet a set criterion.
In the case of a Government Start Up Loan – to qualify for the funding – you must be able to confirm the following:
- Live in the UK
- Be 18 or over
- Have an existing UK-based business that has been trading for less than 24 months, or alternatively plan to start one. This means that even if you are not ready now to buy your franchise you can apply for the loan and use the funding to get started when the time is right.
If you want to find out more about how you can access the funds to help you start your Countrywide Signs franchise, then our experts are ready and waiting to talk to you. Get in Touch today or Schedule a Call with our franchise recruitment specialists.