Franchisors finally crack the finance combination
With the achievement of multiple “bank accreditations” following the completion of a FRANdata Bank Credit Report, brands have recently overcome years of frustration accessing finance and.
Major Australian banks generally have less than fifty brands (or 5% of systems) included in accreditation programmes and professional advisors and franchise brands continue to identify access to finance as a major issue.
FRANdata is working with leading franchise brands to improve finance access for their new and existing franchisees, who are now reaping the benefits.
Chocolateria San Churro, which has received three of the four majors providing accreditations over the last few weeks, proves as an example.
Founder Giro Maurici said, “It has proven a game changer for us with helping the banks understand our business model and enabling easier access to finance for existing and prospective franchise partners”.
Mexican food franchise Zambrero has also benefited from providing increased information to lenders.
CEO Stuart Cook confirmed that both Bankwest and the ANZ had recently approved formal lending programmes for their franchisees adding “lenders seemed genuinely keen to support us but just needed to see some numbers and substance behind our vision.”
“After we put a detailed and objective FRANdata Bank Credit Report in their hands it seemed to then just be a process of validation and getting comfortable with how we as franchisors would work with the lenders from both a business development and franchisee support perspective,” he said.
FRANdata CEO Darryn McAuliffe commented, “FRANdata Bank Credit Reports are now being accepted and utilised by all known active franchise lenders. Banks are committed to lending to small business and franchising remains a strong component of that strategy. In our frequent dealings with those lenders, the door is well and truly open to those brands that go out of their way to make sure they are ‘lender friendly.”
“We are pleased to have been able to help numerous brands across numerous industries achieve better finance access through providing information in a language that lenders understand and trust.”
