3 BIG NO NO’S if you wish to successfully arrange finance
3 big NO NO’s if you are hoping to be successful with an application for finance:
- Have an ‘I can wing it’ attitude
That commonly coined phrase ‘Fail to prepare, prepare to fail’ could not be more applicable than it is here! Lenders need to have great confidence in you and the business proposition before they consider lending any money, therefore coming to the table under prepared is likely to yield only one outcome – not the one you want!
- Little or no personal contribution
Having ‘skin in the game’ is important. Underwriters need to know you’re taking a franchise start up seriously. Without staking personal capital, you would essentially be reaping the rewards of someone else’s risk.
- A poor track record in repaying previous personal or business loans
Your credit history will form an important part of a finance application. Having some adverse credit history is not necessarily a deal breaker, however unless there is a reasonable ‘story’ behind the adverse history, raising finance can prove very challenging.
For help and guidance in raising finance for a franchise venture, contact the friendly Franchise Finance team on:
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