ActionCOACH has ‘Category A’ status with NatWest, HSBC and the Lloyds Banking Group. These banks all have dedicated Franchise departments and are all extremely supportive of the ActionCOACH Franchise. A bank funding opportunity could give you that initial boost that you are after, to get your ActionCOACH Franchise journey started.
We work closely with these departments, providing regular updates about the franchise to ensure the local relationship managers are properly briefed when they speak with you.
In spite of challenging economic times, we’re pleased to say that every Franchise Partner requiring funding for an ActionCOACH franchise, whose business plan has been signed off by ourselves, has received the funding they required, with Franchise Partners borrowing anything from £10,000 to £60,000.
Usually, banks will provide lending for 70% of the total investment, including working capital. Facilities include:
- Highly competitive rates
- Fixed & variable rate loans
- Committed overdrafts
- Business charge cards
For loans over £25,000 the banks will look for security, typically a second charge over a property or other suitable asset. Where security isn’t available, the banks have access to the Enterprise Finance Guarantee Scheme (EFG).
The EFG is a government-backed scheme through which the government provides security for 75% of the loan amount. The bank then takes a view on the remaining 25%. As our Franchise Partners borrowing less than £100,000, the 25% is less than the £25,000 threshold for unsecured lending.
It should be noted that guarantees are taken from the individual for 100% of the facility provided, and whilst the government provides a guarantee to the lender for 75% of the loan, the borrower is liable for the full amount.
The EFG is a more expensive route as there is a 2% annual premium on the outstanding loan amount which the government charges for providing the security. However, if all other aspects of the application are fine, and a lack of security is the only concern, then the EFG is an attractive route from which many Franchise Partners have benefited from.
A good business plan is essential to secure funding, and we work with you to create a business plan that is both realistic and in a format that is accepted by the banks. This will give you the best chance of securing the funding that you require.