The types of finance we provide

Franchise Finance does not limit itself to the sourcing of start-up loans. We have identified a strong demand for the financing of resales, the upgrading of existing units and for refinancing of existing loans. We currently operate in four distinct areas of finance namely:

New projects

We source finance for prospective franchisees who want to open a new business under a franchise granted by one of our accredited franchisors.

Purchase and sale of existing franchised businesses

We source finance for individuals who plan to acquire an existing franchise of an accredited network. In this instance, our involvement benefits the franchisor, the seller and the purchaser because if funding becomes a problem, the sale may fall through. This would leave the network with a frustrated franchisee.

Upgrading and/or the expansion of existing franchised businesses

Franchisors often make the renewal of a franchise agreement conditional upon an upgrade. This will typically require a substantial investment by the franchisee but Franchise Finance can help.

Restructuring of existing loans

Banks tend to ignore the fact that after a few years in business, a franchisee’s credit risk profile changes, usually for the better. They may have charged a higher interest rate and even insisted on a Khula guarantee.

The combination of higher interest rates and Khula’s fees combine to add significantly to your franchisees’ cost of credit, for no good reason. Franchise Finance may be able to assist franchisees to switch the balance of their outstanding bank loans to another provider, thus creating substantial savings for your franchisees.