For several years now Winkworth have been working with HSBC’s dedicated Franchising Team to offer funding and advice for both the existing and new Winkworth franchisees.
HSBC franchising offer lots of options for franchisees and Winkworth highly recommend using them for financing different aspects of your business. They have more than 30 years of franchising experience in the UK and employ a team of Business Managers that work with potential and current franchisees so that one point of contact is established to make the process smoother. Below is an outline of what they can help with.
Not many people are aware that unlike some other banks who simply offer funding, HSBC Franchising will happily offer advice. With the Business Managers having an in-depth knowledge of the franchise industry, they are best placed to offer impartial guidance to franchisees. This ranges from general information about what franchising is, the advantages and disadvantages, legal assistance and finally financing.
Winkworth’s financial requirements for new franchisees opening cold start offices can be between £150,000 to £250,000, and this can be more if franchisees are purchasing an existing Winkworth office. This is a lot of money and many individuals can’t afford all this funding upfront. HSBC offer several different options for franchisees and a local HSBC manager can advise which one is best depending on individual monetary needs:
- Small Business Loan
This could be suited to franchisees wishing to borrow between £1,000 and £25,000. The repayments can be made between 12 months and 10 years and the interest is fixed for the life of the loan.
- Flexible Business Loan
This type of loan is one of the most popular for franchisees as, subject to due diligence checks, the amount of lending is high. The flexible business loan suits Limited Companies borrowing over £10,000, (98% of Winkworth service companies are limited ones) and can be taken out with either a fixed or variable rate. Over a certain amount there is also a Capital Repayment holiday available for a maximum of two years whereby only interest is payable.
- Enterprise Finance Guarantee (EFG)
The EFG could be an option to franchisees who are looking to borrow a small amount of money (less than £30,000) and don’t have the security to obtain a full bank loan, (for example don’t own any assets like a property.) This could be an option if the franchisee is looking to increase working capital funding or looking to start-up, expand or diversify their business.
If you would like to find out more about funding your franchise or Winkworth in general, why not get in touch with our New Franchising team today.