{"id":17702,"date":"2023-02-16T09:00:28","date_gmt":"2023-02-16T09:00:28","guid":{"rendered":"https:\/\/www.franchiselocal.co.uk\/news\/?p=17702"},"modified":"2023-02-15T19:47:25","modified_gmt":"2023-02-15T19:47:25","slug":"5-best-franchise-loans-to-explore","status":"publish","type":"post","link":"https:\/\/www.franchiselocal.co.uk\/news\/5-best-franchise-loans-to-explore\/","title":{"rendered":"5 Best Franchise Loans to Explore"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #101010;color:#101010\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #101010;color:#101010\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/5-best-franchise-loans-to-explore\/#how-much-do-franchises-cost\" >How Much Do Franchises Cost?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/5-best-franchise-loans-to-explore\/#the-gift-of-a-franchisor\" >The Gift of a Franchisor<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/5-best-franchise-loans-to-explore\/#how-to-find-franchise-loans-in-the-uk\" >How to Find Franchise Loans in the UK<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/5-best-franchise-loans-to-explore\/#1-the-start-up-loan\" >1. The Start-Up Loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/5-best-franchise-loans-to-explore\/#2-bank-business-loans\" >2. Bank Business Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/5-best-franchise-loans-to-explore\/#3-fsb-loans\" >3. FSB Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/5-best-franchise-loans-to-explore\/#4-equipment-financing\" >4. Equipment Financing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/5-best-franchise-loans-to-explore\/#5-venture-capital\" >5. Venture Capital<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/5-best-franchise-loans-to-explore\/#how-to-acquire-a-franchise-on-a-budget\" >How to Acquire a Franchise on a Budget<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/5-best-franchise-loans-to-explore\/#use-franchise-local-to-your-benefit\" >Use Franchise Local to Your Benefit<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>If you want to start a franchise business but don\u2019t have much money, you\u2019re not out of luck. Franchise loans offer would-be <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchisee-definition-and-advantages\/\" target=\"_blank\" rel=\"noopener\">franchisees<\/a> the chance to begin acquiring their franchises.<\/p>\n<p>There are many benefits to starting a franchise. As a franchisee, you won\u2019t have to worry about all the risks of starting your own business. When you sign your <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/what-is-a-franchise-agreement-and-how-to-properly-analyse-it\/\" target=\"_blank\" rel=\"noopener\">franchise agreement<\/a>, you\u2019ll take on the company\u2019s branding and intellectual property. Taking on another company gives you a built-in customer base and a proven track record.<\/p>\n<p>So, if you\u2019re low on money, don\u2019t quit now. Use this handy article to find the best franchise loans. We\u2019re confident we\u2019ll get you on the right track.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"how-much-do-franchises-cost\"><\/span>How Much Do Franchises Cost?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Many would-be franchisees start with the same question: How much do franchises cost? The truth is, the answer can vary considerably. You can find low-budget franchises for <a href=\"https:\/\/www.franchiselocal.co.uk\/franchise-under-10k\/\" target=\"_blank\" rel=\"noopener\">less than \u00a310,000<\/a>, while higher franchises, like <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/what-is-a-mcdonalds-franchise\/\" target=\"_blank\" rel=\"noopener\">McDonald\u2019s<\/a> and <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/opening-a-dominos-franchise\/\" target=\"_blank\" rel=\"noopener\">Dominos<\/a>, can cost upwards of <a href=\"https:\/\/www.franchiselocal.co.uk\/franchise-under-500k\/\" target=\"_blank\" rel=\"noopener\">\u00a3500,000<\/a>.<\/p>\n<p>We don\u2019t all have the money required to take a top franchise. No matter your financial situation, you\u2019ll be able to find resources to help you acquire your dream franchise.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"the-gift-of-a-franchisor\"><\/span>The Gift of a Franchisor<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Once you\u2019ve paid your franchising fee, you\u2019re in luck. From there, your <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/what-is-a-franchisor\/\" target=\"_blank\" rel=\"noopener\">franchisor<\/a> (or franchise owner) will walk you through the necessary training to help you get on your feet.<\/p>\n<p>Ideally, this franchisor will remain a mentor throughout the process, helping you across the board, from hiring to training new employees. So, once you pay your fee, you\u2019re in good hands. But how can someone with small finances get there in the first place? That\u2019s where loans come in.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" td-center aligncenter wp-image-17707 size-large\" title=\"image1 min 2 1\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-1024x714.png\" alt=\"The Best Franchise Loan Options to Explore\" width=\"696\" height=\"485\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-1024x714.png 1024w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-300x209.png 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-768x536.png 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-1536x1072.png 1536w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-150x105.png 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-600x419.png 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-696x486.png 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-1392x971.png 1392w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-1068x745.png 1068w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-602x420.png 602w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-1204x840.png 1204w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-100x70.png 100w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1-200x140.png 200w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image1-min-2-1.png 1809w\" sizes=\"auto, (max-width: 696px) 100vw, 696px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"how-to-find-franchise-loans-in-the-uk\"><\/span>How to Find Franchise Loans in the UK<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are many types of loan opportunities available throughout the UK. Start perusing your options today to get your best foot forward.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1-the-start-up-loan\"><\/span>1. The Start-Up Loan<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The \u201cstart-up loan\u201d is offered by the UK government to help get businesses on their feet. Fortunately, this loan is unsecured, meaning you won\u2019t have to put your house or property at stake. This loan is outstanding for those just starting and can be secured between 500 and 25,000 \u2013 enough to secure a low-cost franchise.<\/p>\n<p>Consider a few starting qualifications:<\/p>\n<ul>\n<li>You must live in the UK<\/li>\n<li>You must be 18 or older<\/li>\n<li>You have (or are planning to have) a UK-based business that\u2019s been trading for at least 24 months.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"2-bank-business-loans\"><\/span>2. Bank Business Loans<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A business bank loan is a loan offered by banks to help fund franchises. The loaned amount will likely vary depending on your specific vendor and the franchise you\u2019re hoping to secure.<\/p>\n<p>Before trying to secure a business bank loan, you need a plan. Come up with a business plan and compile evidence of credit trustworthiness. Unlike a start-up loan, you may have to purchase collateral, like property, to secure a loan.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-fsb-loans\"><\/span>3. FSB Loans<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You won\u2019t just have to rely on banks or the government for funding as a franchisee. The <a href=\"https:\/\/www.fsb.org.uk\/\" target=\"_blank\" rel=\"noopener\">Federation of Small Businesses<\/a> (or FSB) provides many loan options to help out business owners like franchisees. The SBA comes with favourable terms like lower interest rates and extended repayment periods.<\/p>\n<p>Conversely, the FSB\u2019s application process can be lengthy\u2013 and a loan may be more challenging to secure.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4-equipment-financing\"><\/span>4. Equipment Financing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Specific franchise <a href=\"https:\/\/www.franchiselocal.co.uk\/industries\/\" target=\"_blank\" rel=\"noopener\">industries<\/a> come with equipment-based fees. Examples of these franchises include:<\/p>\n<ul>\n<li>Manufacturing equipment such as machinery and tools<\/li>\n<li>Office equipment like computers, phones, and printers<\/li>\n<li>Transportation equipment like delivery vans and trucks<\/li>\n<\/ul>\n<p>No matter your franchise, you\u2019ll likely have to invest in equipment. Fortunately, equipment financing helps buy new or used equipment. Depending on your credit history, these loans can range from secured to unsecured. Often, the promised equipment will be used as collateral.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5-venture-capital\"><\/span>5. Venture Capital<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If the above options don\u2019t satisfy you, you can try reaching out to investors. For franchisees, venture capital can be used to finance the purchase of a franchise or even help its growth.<\/p>\n<p>However, this financing likely means you will have to give up a portion of your ownership. Ensure the deal is worth it before giving up a part of your return.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-17706 size-large\" title=\"image2 min 1\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1-835x1024.jpg\" alt=\"Crowd Walks\" width=\"696\" height=\"854\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1-835x1024.jpg 835w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1-245x300.jpg 245w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1-768x941.jpg 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1-1253x1536.jpg 1253w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1-150x184.jpg 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1-300x368.jpg 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1-600x735.jpg 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1-696x853.jpg 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1-1392x1706.jpg 1392w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1-1068x1309.jpg 1068w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1-343x420.jpg 343w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1-685x840.jpg 685w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image2-min-1.jpg 1631w\" sizes=\"auto, (max-width: 696px) 100vw, 696px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"how-to-acquire-a-franchise-on-a-budget\"><\/span>How to Acquire a Franchise on a Budget<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you\u2019re hoping to start a franchise business, you don\u2019t have to rely on a loan. Many zero-cost franchises allow you to purchase a franchise at no cost. Of course, don\u2019t stick to the first opportunity you see. Utilise reviews to determine if a zero-cost franchise is reliable.<\/p>\n<p>Furthermore, there are many low-cost options. Our website lets you navigate different budgetary ranges, including <a href=\"https:\/\/www.franchiselocal.co.uk\/franchise-under-10k\/\" target=\"_blank\" rel=\"noopener\">those under \u00a310,000<\/a>. Wherever you are, we have options.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"use-franchise-local-to-your-benefit\"><\/span>Use Franchise Local to Your Benefit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Whatever your financial situation, don\u2019t give up on franchising. This business model comes with too many advantages and can lead to your monetary success.<\/p>\n<p>We recommend looking at accessible government and bank loans and low-cost franchises. These processes often take time and research, so take your time. As you progress, continue to learn and grow. Our <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchising-tips-and-advice\/\" target=\"_blank\" rel=\"noopener\">articles<\/a> will illuminate you and prepare you to take over the industry. Learn <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/10-reasons-to-buy-a-care-franchise-and-where-to-start\/\" target=\"_blank\" rel=\"noopener\">how to start a care franchise<\/a> and <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-to-start-a-franchise-with-no-money\/\" target=\"_blank\" rel=\"noopener\">how to start a franchise with no money<\/a>.<\/p>\n<p>Even better, our <a href=\"https:\/\/www.franchiselocal.co.uk\/ultimate-guide-to-franchising\/\" target=\"_blank\" rel=\"noopener\">Ultimate Guide<\/a> will pack all the necessary information. We can\u2019t recommend it enough.<\/p>\n<p>Franchises aren\u2019t just made for the elite. The business is accessible and profitable\u2013 as long as you know where to look!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you want to start a franchise business but don\u2019t have much money, you\u2019re not out of luck. Franchise loans offer would-be franchisees the chance to begin acquiring their franchises. There are many benefits to starting a franchise. As a franchisee, you won\u2019t have to worry about all the risks of starting your own business. [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":17704,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[29],"tags":[],"class_list":["post-17702","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tips-advice"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2023\/02\/image3-min-5.jpg","_links":{"self":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/17702","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/comments?post=17702"}],"version-history":[{"count":0,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/17702\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media\/17704"}],"wp:attachment":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media?parent=17702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/categories?post=17702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/tags?post=17702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}