Brand recognition is a crucial step in the success story of every entrepreneur. However, the journey from brand creation to recognition is not always a bed of roses. Earning the success of its customers becomes imperative and often turns out to be the cause of failure for most new companies.
On the other hand, purchasing an already established franchise and establishing it on your terms seems to be a much more reliable option. Owing to its brand presence, the initial struggles of marketing are not necessary, thus, helping entrepreneurs save considerably.
However, truth be spoken, franchise finance requires a considerable initial investment. This is where eminent lending institutions like Bajaj Finserv step in with their business loans. Owing to their pre-approved offers on franchise financing, business loans, personal loans and other financial products and services, they make the process of availing funds much more convenient.
This not only saves time but also allows individuals to meet their monetary needs at the earliest. All one needs to do is enter a few basic details and check out their pre-approved offers.
The 5 must know things of franchise financing –
While franchising a well-established brand may be lucrative, one must not decline the precautionary steps before signing that final cheque. Have a look at the five most important steps in this matter:
1. Risk assessment is necessary:
Every investment must have a considerable backing. Often in the pursuit of creating a successful business, entrepreneurs forget the importance of having a competent management team. Remember, customer satisfaction is your ultimate goal.
Make sure that your business is receiving a steady flow of working capital and has an experienced management team to handle the same.
Note: The year 2015 alone saw more than 15% of franchises going broke owing to the lack of management and improper disbursal of funds.
2. Making a success story:
While franchise finance or business loans may give your company its recognition, converting it into a standalone brand requires a bit more. To achieve so, you must –
a. Choose the right loan partner:
A business loan are available from many organisations; however, choosing the right one is crucial. Before applying, check for the loan repayment tenor, and the interest levied. Additionally, cross-check for their reputation in the market and your account transparency.
b. Know your investment capacity:
Often owners tend to avail a loan that surpasses their repayment capacity, ultimately ending up with bad debt. It is crucial to have back up cash in hand after repaying your loan. These are beneficial in case of short sales or failure to meet quarterly turnovers.
Injecting the additional cash into your venture at such points will help you in maintaining its steady operation.
c. Legal and transparent paperwork:
For sanctioning franchise finance, authentic financing institutions will ask for a complete statement of your finances. Moreover, a franchise agreement draft and a business plan will also be necessary.
You can avail the help of consultants in ensuring transparency of your business documents. Producing incomplete business documents falls under bad business decisions which can lead your firm to be broke.
3. Benefits of availing franchise financing –
If you are still sceptical regarding the usability of such finance, have a look at its benefits provided by organisations like Bajaj Finserv.
a. Hassle free loan disbursal
Make sure to get your business finances sanctioned and disbursed within 24 hours. Moreover, loan disbursal becomes even faster with minimal documents since there are no requirements of collaterals.
b. Flexible repayment options
Applicants can borrow franchise finance anytime and withdraw only the necessary amount. Additionally, they need to pay interest only on that borrowed amount. One can also choose to pay the interest only as EMI and repay the principal amount later.
Note: Such an approach helps entrepreneurs lower their EMI amounts by up to 45%.
Loan up to Rs. 30 Lakh
Now pay for depletion of stocks, royalty fees or stacking of new inventory with franchise financing amounts extending up to Rs. 30 Lakh.
So, with an easy to go eligibility criteria and competitive interest rates, finance your new venture and fulfil all investment needs effortlessly. Opt for franchise finance and turn your business into a brand!
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