The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
What security can I use to secure funding for a franchise?
Brian Duckett writes:
The most common asset used for security for a small business loan is property, including residential, commercial and rural land, although in some instances a lender may accept other balance sheet assets to secure a loan, including your cars and equipment.
In the end, it usually boils down to your home, assuming there is sufficient equity in it once any existing mortgage is taken into account, or perhaps the home of another family member or friend, depending on your circumstances. Possibly, commodities such as gold, silver or even antique furniture or paintings can be used, but not personal pension funds.
Whatever asset you use to secure your business loan, you can still sell it if you need to during the loan term, provided you obtain consent from the lender and offer another form of security to take its place.
Deciding whether or not to provide personal security for a business loan is a big decision, but then so is going into business in the first place. It’s also a sign of confidence and commitment. If you’re not prepared to back your own business plan, why should anyone else?
Brian Duckett is chairman of The Franchising Centre, part of the world’s largest network of specialist franchise consultants.
You might also be interested in
Answered by Alan Wilkinson
Alan Wilkinson writes: The short answer is no. The interesting bit is why a franchisee should actually... read more
Answered by Louise Harris
Louise Harris writes: This question is one that many have explored and much has been written on... read more
Answered by John Pratt
John Pratt writes: Virtually all franchise agreements are granted for a specific term and either contain an... read more
Answered by Shelley Nadler
Shelley Nadler writes: The answer to this will really depend on the reason your franchise is not... read more
Exciting Franchise Opportunities
Companies to Consider
Bark Busters Dog Training
£70,000-plus per annum
Part funding available
The Little Foxes Club
Stagecoach Performing Arts
Net profits rising from 7% to 40% on maturity
Average net profit margin 20%
BforB - UK
Circa £200,000 AFTER fees
Third party support
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 3 years ago | 2 min read
Added one day ago | 2 min read
Added 4 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news