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MikeF
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DTW, post: 102772 wrote:
Hello fellow forumers!

I am about to take on a franchise opportunity. I have finished work with my former employer 18 months ago and have been on holiday overseas for much of the time since. I have enough cash reserves to pay for the franchise however I would like to take out a business loan to finance the work vehicle and cover a portion of the franchise cost, so that I can have something to claim against for taxation purposes.

I think the problem here is that I don’t have any recent evidence to support my ability to service the loan. However I have planty of equity in my property and enough cash reserves to cover the loan on top of that.

One finance broker I just spoken to (Smartline) advised that no bank would consider my application and that the only option is to pay for everything outright, trade for 12 months or more and then come back and apply for the loan then. I am not so sure about this advice. Is it correct? Is there another way?

Hi

Are you buying the franchise from an existing owner that has a financial track record or are you starting fresh and purchasing the rights from the head franchisor?

If its an existing business there are probably a couple of lenders out there that would consider motor vehicle finance and there may even be a mortgage lender that would consider your proposal.