Starting any business or franchise poses great challenges to every entrepreneur. The total amount of money that you need to put into your franchise is a major consideration and depends on the nature of your enterprise. During the start-up stages, your cash flows are often expended quicker than you plan as unexpected costs arise. However, you can find the business finance needed for your newly established franchise. There are many types of business finance available for your franchise, and it can be tailor-made for your specific needs.
One option is debt finance from banks and financial institutions. These loans come with a payment obligation schedule and a fixed interest rate depending on your chosen terms (either short-term or long-term payments). An established relationship with your bank is advantageous before attempting to secure a loan for your franchise. Debt finance usually requires personal collateral as security, such as your home.
Another finance option is through grants, especially if you are establishing a technology-oriented franchise. Grant opportunities given by governments or by private investors are highly competitive because they are giving you free money. These grants correspond with strict guidelines though, and can have on going obligations on you depending on the type of grant.
This option is simply taking funds in exchange for a share in the ownership of your franchise. Equity finance generally does not involve you taking on debt or re-paying the money for a specific period. The downside of equity finance is that you do not have full control of your business. The “additional” investors mean you won’t have 100% ownership of your small business.
Franchise equipment finance is another option available to would-be franchisees trying to secure their new small business. Equipment finance is a great way to acquire the equipment needed in your franchise. Typically you won’t need to put up assets like your home as collateral because the equipment funder will use the equipment itself as security. Equipment finance also gives you numerous flexible options around choosing terms, payouts, ownership or even returning your equipment. Do your research and learn from other franchisees, so that you will be guided on what is best for your particular franchise’s success and growth.
Cashflow It®, is a specialist franchise equipment finance company and the only equipment-funder focused solely on the Australian franchise industry. Cashflow It® can fund just a single piece of equipment through to an entire fit-out for your new franchise. By using Cashflow It® you do not take on any asset risk. You have flexible options to pay out the contract whenever you like and purchase the equipment or you could return the equipment if it is not quite right for your franchise without any further obligation. Cashflow It® takes the stress out of financing your franchise equipment with a simple online application that only takes about 10 minutes to complete. For more information about Cashflow It® franchise equipment finance, visit www.cashflowit.com.au.