Franchise Loans
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Looking for the BEST Franchise Loan? We've already found it!

Obtaining finance when buying a franchise may be difficult as many lenders hesitate to fund new franchises or new ventures.

At Fox Finance Group our Lending Specialists have many years experience in securing competitive franchise funding. We have strong business relationships with a number of financial institutions and banks that can help put the dream of owning your own business happen.

Rest assured that our experienced Lending Specialists understand what lenders are looking for, they know how to put together the very best submission in order to maximise your chances of getting the very best approval.

Fox Finance Group can assist in obtaining finance for a new or existing business franchise in the following areas:

How can I finance a franchise?

How can I finance a franchise?

Secured Business Loan

A secured business loan is a loan that requires you to place something as security. In many cases, when someone takes out a franchise loan, they often put their personal home up as collateral against the loan.

In the event that the borrower is unable to make payments on their franchise loan, the lender can seize their home to absolve the debt.

Secured business loans are nice because you can borrow a lot of money with a high loan-to-value ratio depending on what you’ve put up as collateral. They can also have lower interest rates because the loans are less risky than an unsecured loan.

Unsecured Business Loan

An unsecured franchise loan does not require collateral so borrowing amounts are lower, interest rates are generally higher, and the repayment agreement is usually capped depending on your approval.

This is nice if you do not have anything to put as security or you simply don’t want to risk it. It’s harder to get an unsecured loan and you may have to pay higher interest but there is a time and place where this is the right option.

Low-Doc Business Loan

Low-Doc is a type of franchise finance where you’re not required to provide traditional proof of income. If you don’t think you meet the usual criteria to receive funding, this might be the right option for you.

If you run your own small business, work on tips, or work a “gig” job, you might be eligible for a low-doc franchise loan.

Business Line of Credit

A business line of credit is when you borrow funds over a period of time as you need them. Instead of receiving a lump sum loan all at once, you’ll borrow money and use it as capital for your business on an ongoing basis.

What should I consider before applying for a franchise loan?

What should I consider before applying for a franchise loan?

Getting a business loan for a franchisee requires you to think about a number of factors.

Total Amount

How much do you need to borrow to finance the franchise? This will depend on the franchise you’re buying.

For example, the average cost of a McDonalds franchise is between $1.3 -2.3 million. Much of this you need to put up yourself to get the franchise.

A Boost Juice franchise on the other hand can cost much less.

There are other factors such as location that will impact the total amount you need to borrow. All of these criteria have nothing to do with your financial literacy but will still impact your ability to receive a franchise loan.

Additional Expenses

Purchasing the franchise is only one piece of the puzzle. You may need to pay for land, leases, equipment, furniture, landscaping, parking, and other factors.

Many of these factors can lead to ongoing costs before you actually even make money. Purchasing the franchise is one step but it could take months and even years before you make a profit. You may need more money to compensate for that grace period.

Your Financial Situation and Borrowing Power

Not everyone is eligible for franchise finance, you need to be financially sound and have a strong history of success. You’ll need to take inventory of your current assets and liabilities as well as whether or not you can offer enough security to get a secured loan.

Royalty Payments and Terms

Part of buying into a franchise is realising that you will have to pay royalties to the company.

One of the benefits of purchasing a franchise is that you get brand recognition right away. You’re not starting a business that no one has ever heard of.

With that comes royalty fees though. As you start to make money, you may have to pay a certain percentage to the company based on your profits.

Apply for a franchise loan

Franchise Loan Options

Secured Business Loan

A secured business loan is a loan that requires you to place something as security. In many cases, when someone takes out a franchise loan, they often put their personal home up as collateral against the loan.

In the event that the borrower is unable to make payments on their franchise loan, the lender can seize their home to absolve the debt.

Secured business loans are nice because you can borrow a lot of money with a high loan-to-value ratio depending on what you’ve put up as collateral. They can also have lower interest rates because the loans are less risky than an unsecured loan.

Apply for a business loan

Unsecured Business Loan

An unsecured franchise loan does not require collateral so borrowing amounts are lower, interest rates are higher, and the repayment agreement is usually no longer than 10 years.

This is nice if you do not have anything to put as security or you simply don’t want to risk it. It’s harder to get an unsecured loan and you may have to pay higher interest but there is a time and place where this is the right option.

Apply for a business loan

Low-Doc Business Loan

Low-Doc is a type of franchise finance where you’re not required to provide traditional proof of income. If you don’t think you meet the usual criteria to receive funding, this might be the right option for you.

If you run your own small business, work on tips, or work a “gig” job, you might be eligible for a low-doc franchise loan.

Apply for a business loan

Business Line of Credit

A business line of credit is when you borrow funds over a period of time as you need them. Instead of receiving a lump sum loan all at once, you’ll borrow money and use it as capital for your business on an ongoing basis.

Apply for a line of credit
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5 Simple Steps To Getting Your Loan

  • 1. Apply
    1. Apply

    You can complete your application either online or over the phone with us.

  • 2. Documents
    2. Documents

    We will ask you to provide proof of income and identification.

  • 3. Get approved
    3. Get approved

    We'll run through all the details of your loan approval, so that you know exactly what you're committing to.

  • 4. Sign contracts
    4. Sign contracts

    Most lenders will allow you to sign your loan documents electronically. Our technology makes the signing process quick and easy!

  • 5. Settle
    5. Settle

    Your loan will be booked in for settlement, and is often finalised within one business day. It’s that simple!

5 Simple Steps To Getting Your Loan

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