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Franchise Loan - Existing Franchise

Purpose

A Existing Franchise Loan is a funding provided by a lender based on the strength a Existing Franchise's proven brand, systems, and financial track record. Often a Existing Franchise must be 'accredited' with a bank for a loan to be issued. To get approved you must either have a minimum of 50% deposit or equity in a property that you own.

Benefits

Existing Franchise businesses are seen as a stronger business model than independent ventures so this may put you in a better position to get approved for a Existing Franchise loan.

Security

For an accredited Existing Franchise that has a strong track record, the lender is much less likely to require property security. Instead, Existing Franchise Loans are secured against the value of the particular store that is being set up or purchased. For a new Existing Franchise, you may use an existing residential property as security for the Existing Franchise loan or another asset that has been agreed on with the lender.

Repayment terms

Agreed between Lender and Borrower Can range from 1 month to a 30-year term. An establishment fee may apply and principal and interest will need to be repaid. Interest rate may be fixed or variable.

Process

To be matched with a New Existing Franchise Loans bidder, just follow our anonymous New Existing Franchise loans listing process. The most common requirements from lenders may include: Application Form Forms of Identification Trust Deed if you operate through a trust Business Plan Personal Asset & Liability Statement Commitment Schedule Financial Projections Accountant Prepared Financial Statements ATO Portal and / or Business Activity Statements Personal and / or Company Tax Returns ATO Notice of Assessment.