If you have made a decision and already want to realize yourself as an entrepreneur, then you probably already appreciated all the degrees of risk of the future enterprise. However, there may not be enough financial means to implement most of these ideas. What to do in such a situation? The best solution for such a problem may be to obtain a franchise loan. Domestic financial institutions began to lend relatively franchise, loans to private entrepreneurs still give.
Before proceeding to the solution of the main issue, it is worthwhile to first clarify what franchising is. The British understand this term as a license and a privilege. By franchising, it is customary to understand the relationships that develop between market participants. One of the participants, the franchisor provides the second participant with the franchisee the opportunity to engage in a certain type of business according to a deliberately developed business project. Such an approach makes it possible to reduce a number of risks that novice entrepreneurs may initially face. The well-developed franchisor brand eliminates the need to develop and conduct advertising campaigns, that is, eliminates the need for additional costs.
Banks do not welcome all areas of entrepreneurial activity. Very often they give preference to ideas that are not associated with financial risk. And if you set out to engage in trade or production, then most likely the banks will go to meet you. If an entrepreneur decides to use a loan to purchase a franchise, they should be prepared to receive a collateral, which is represented by fixed assets. Often, to obtain such a loan, it is enough to bring a surety with you to the bank.
To obtain a franchise loan, the borrower needs to have a full package of documentation, as well as an identity card - a passport. To get a loan, you just have to fill out the necessary form and application for a loan. Domestic financial institutions began to lend relatively franchise.
Today you can find lenders who will agree to a loan secured by a land plot. But it is noted that often more stringent requirements are imposed on the borrower. The very first thing the bank pays attention to is the location of the land. The location of the site within the city or outside the city is very important. In the first case, the bank is more willing to agree to the transaction, since land located in the city will have greater liquidity. In addition, the site will need to be equipped with various utilities, such as gas, water and electricity.