Who qualifies?

Franchise Finance operates in four distinct areas of finance namely:

New projects

We source finance for prospective franchisees who want to open a new business under franchise.

Purchase and sale of existing franchised businesses

We source finance for individuals who plan to acquire an existing franchise. This can work to the advantage of both the seller and the purchaser because if funding becomes a problem, the sale may fall through.

Upgrading and/or the expansion of existing franchised businesses

Market pressures necessitate regular upgrades of store interiors and equipment. In many instances, the renewal of a franchise agreement is conditional upon an upgrade. This will typically require a substantial investment 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. Because they saw you as a higher risk back then, they may have charged you a higher rate of interest than is now justified. They may have even insisted on you taking out a Khula guarantee.

Higher interest rates and Khula’s fees combine to add significantly to your cost of credit. You need to ask yourself whether this is still appropriate. Should you come to the conclusion that you are getting a raw deal, Franchise Finance may be able to assist you to switch the balance of your bank loan to another provider. This can add up to substantial savings.