If you opt for the franchise business model, you should consider the following factors in terms of funding.
The investment in a franchise company has some aspects that you should consider. First, you should check what the purchase price is at your disposal. Do this before contacting the bank you trust. Create a personal overview of your finances. Be prepared to the specification of the banker that you should apply a 20% share of your own funding amount. If you are in position to do so, your chances of getting a loan increase.
Preparation is the alpha and omega: the conversation with the Bank
Orient yourself at the creditor banks, because these finance numerous franchises. If you get in touch with the bank, you should be well prepared. The following documents are some that you should have in any case:
● An overview of your financial status,
● The tax returns of the past three years and
● Proof of your pension payments
Put yourself in the position of the banker at the interview: they would like to enter the lowest possible risk in lending. In addition, the bankers should feel well in your presence, don't just talk about numbers, but show your character! Be also more realistic than optimistic in your projects. The choice of your franchise company plays a big role in lending, because this can help you, but also harm you: bankers prefer companies with a known brand name and a long history of success. So be especially careful when choosing.