Bank Fund Offers £100m to Franchise Start-ups
Would-be business owners seeking finance to become franchisees can apply for a dedicated bank loan, following the launch of a £100-million fund.
The joint NatWest and RBS fund is aiming to finance up to 1,800 new franchise businesses and 24,000 new jobs (based on typical start-up costs and franchisees typically employing around 13 staff).
“The [franchise] industry has shown itself to be virtually recession proof, so for the many people left out of work by the recession franchising is a great way to start up a business.”
said NatWest and RBS chairman of small business, Peter Ibbetson.
British Finance Association director general, Brian Smart, added:
“The fund is a great way of encouraging new entrants into this vibrant sector. The UK franchise industry has performed well in recent years and we welcome the further investment to build on this momentum.”
The fund charges businesses a reduced 1 per cent arrangement fee for the first year. Successful applicants can borrow up to £500,000 over a repayment term of up to 10 years. Applicants can borrow up to 70 per cent of the overall amount required.
For more information about the fund, visit the NatWest website