Franchise Finance

Whether your franchise business of choice focuses on fast food, fitness, financial planning or anything in between, the first step to building a strong business foundation is ensuring your business finance is not only competitive but will also meet your business goals, now and in the future. Whether you need $50k or $5million+ our Business and Franchise Finance Specialists partner with businesses of all sizes to find a better finance deal.

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Which bank?

It’s not so much a question of which bank, but which bank actually wants your business. The fact is, there are few lenders that will fund franchise businesses and it’s important to know which ones are receptive to your particular franchise.

There can also be big differences in loan flexibility and costs. So how exactly can one bank or lender differ from the other?

  1. Loan to Value Ratios (LVRs) Some lenders will lend more than others. While some will lend up to 70% against the market value of an existing business and up to 60% against total setup costs (ex GST) for a greenfield site, others may only lend up to 60% for existing businesses and 50% for new businesses.Some lenders may not be prepared to lend against your franchise business at all.
  2. Interest Rates and Fees Interest rates and fees for business loans can vary greatly, anywhere up to 3% p.a. difference is common. While application fees can vary from $0 to 2.5% of the loan amount. Monthly fees can vary from $0 to $100+. This can equate to thousands of dollars over the life of a loan.
  3. Approval Conditions These can vary significantly and may include maximum loan terms in line with lease duration (even if loan is secured by residential property). Some lenders will require a business valuation (at your cost) while others will assess the value of your business as a multiple of Net Profit (EBITDA). Your Green Team finance broker will assist you to avoid valuation costs if possible.
  4. Repayment Structure Most lenders will insist on Principal and Interest (PI) repayments for business loans secured by a franchise business. However, Interest Only (IO) repayments may be possible for business loans secured by residential property. An overall loan term of up to 25 – 30 years may also be possible with residential property security.

Franchise Finance doesn’t need to be difficult

Green Team finance brokers are franchise finance specialists who are in the best position to negotiate better loan terms, conditions and even costs by comparing a range of funding options. Our franchise lending specialists will:

  • Know immediately which lenders will be receptive to your business opportunity
  • Where possible, obtain competitive options from a range of lenders (including your existing bank) – not just one
  • Negotiate on your behalf to secure better interest rates, fees and loan conditions
  • Guide you through the loan documentation and paperwork requirements
  • Complete loan application forms and lodge the loan application on your behalf
  • Manage the settlement process in conjunction with your solicitor etc.
  • Act as a conduit between you and the lender for the life of your loan – a real person on the phone when you need them (not a call centre)

If you’d like a better finance deal for your franchise business opportunity, talk to your specialist Green team broker today.

Our Franchise Finance Specialists

Daniel Green


Australia's leading hospitality, accommodation and childcare finance specialist and winner of Australian Broker of the Year 2022.

Derek Parsons

Finance Consultant

An award-winning small business and franchise finance specialist who's on your side when it comes to finding a better finance deal.

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