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Business Loan for Franchise

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The economic growth of India in 2018-2019 first quarter was 8.2%. India is poised to become third-largest economy after the US and China. Rupees 89,000 crores was recorded during April-June 2018 for the Foreign Direct Investment (FDI). The industrial production grew by 4.5% on a yearly basis. India is gathering attention from the entire world for its economic growth. This solid growth in India makes the country an ideal destination for business opportunities. 

In India, the franchise business model is getting more attention. As the large enterprises share the procedures, the know-how, the intellectual property, brand, business model, rights to sell the branded products and services to the franchisee. And many business owners do business by making a profit being a franchisee to the established brands and large enterprises. If you are business-minded and have done your proper homework, then its time to know about the right financing option and get going with the business as a franchise partner. 

The expenses for the new franchise are funds for the assets, working capital, and royalty fees. The existing business requires funding for expansion, the introduction of new products and cash flow.  Therefore, Flexiloans can provide you with the required support and have introduced business loans for established franchise owners.

Franchise Business Loans is the best product from Flexiloans for the owners to cover their required capital requirements. The Loan offered is up to 1 crore and there are 2 types, 1 with the regular term loan and then 2 for the credit card swipes of the business operations. To ease your growth as a business partner with an established brand we offer cessation period for the 6 months. Please find the unique benefits offered by the loan below.

Top 5 benefits in partnering as a franchisee

  • This business model has a higher rate of success when compared to other business.

  • Also, this business offers the freedom of being small business owners, further supported by the benefits of a large branded enterprise business network.

  • The business model gets the entire support and brand image from the established large enterprise network.

  • The training is provided by the franchisors of the large established business model and there is less dependency on the prior business know-how and prior experience.

  • The cost of the model is less apart from all its benefits when compared to starting a business on your own.

How to get a franchise loan in India

  • To get the business loans for the franchise you need to be well prepared and analyze the model, the products, the brand that you want to connect and then analyze the lender. You need to ensure that you have all the supporting documents and loan amount requirement when aligning with a particular lender. You need to get prepared beforehand for the loan amount and how you want to repay the loan amount and its interest amount. Once you organize yourself to this then most of your effort is over.

  • You need to settle with probably the one and only and the best vendor. Do not go to brokers. You need to select the lender who has earned a name in the market providing the loan in the past and knows about your brand and the products. Do not try everywhere and anywhere. Do not submit the applications blindly and wait for the results. This process may take anywhere between 120 – 190 days even before you get funded. Some may even charge a hefty one-time application fee which will hit hard on your expenses. Franchise financing lenders may do a “hard” credit pull when you apply for a business loan. Multiple hard credits pull within a timeframe will actually hurt your credit score and decrease your ability to get a loan. The best alternative is to use the Fintech services offered by Flexiloans, which puts you in the driver’s seat. It allows lenders to evaluate your loan package and credit and engage with you directly without officially applying at the bank. You can feel free to check the site and apply for a loan and you will get a call for verification and thus your loan is approved. This will allow you to get a loan quickly as well as maintain a good credit score. 
  • If you are using the web to help you acquire a loan, beware of “Free” services, sites not certified by unencrypted sites or websites with poor ratings. These sites may just want your contact information which they then sell to brokers and lenders. It is not a very efficient way for you to get financing and may lead to waste in time, money and calls from unsavory and unqualified sources. Also, make sure there are no hidden fees that either you or the lender will need to make – or guarantees that you will receive a loan.

Small business loan for a franchise and Who can apply?

The business owners can apply for franchise loans if they are in any one of the following industry segments:

    • Retailer
    • Service
    • Trader
    • Garments
    • Distributor
    • Electronics
    • Importer
    • Appliances
    • Grocery
    • Hardware & Sanitary
    • Computers
    • Fashion
    • Automobiles
    • Mobile
    • Hardware & Sanitary
    • Babycare
    • Furniture

Documents Required                  

  • Personal KYC
    • PAN Card
  • Residential Address Proof that contains the address of the owner
      • Rent Agreement
      • Driving License
      • Voter ID
      • Ration Card
    • Passport
    • Net banking statement in PDF format with the last 6 months details. Current Account Bank transaction 
  • Business KYC which includes either the GST Registration Certificate or the shops and Establishment Certificate

Eligibility Criteria             

    • You should have been in business for at least 12 months from the date of incorporation
    • Your monthly turnover should be at least? 2,00,000
    • You should be above 21 years of age

How to Apply

    • Fill in the Sign-Up form. This takes less than 10 minutes.
    • Upload the requested documents.
    • Find the required loan franchise in your account within 48 hours!

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