For many budding franchise owners a major obstacle to fulfilling their ambition of owning their own business is funding. To help people secure money for their franchise, NatWest has announced it is making £100 million available in loans to fund new businesses.
To attract more people to the franchise industry NatWest and RBS are including a discount fee to those looking to own a franchise. This fee includes a 1 per cent arrangement fee, which is lower than the usual 1.5 per cent; repayment holidays; and two years free banking.
It is estimated that the fund has the potential to finance up to 1,800 new franchises, which will create 24,000 new jobs in the UK.
NatWest and RBS Chairman of Small Business, Peter Ibbetson, said: “Everybody wants to see banks funding business growth, as well as helping new businesses get off the ground to create jobs – this is exactly what this fund will deliver. The industry has shown itself to be virtually recession-proof, so for the many people left out of work by the recession franchising is a great way to start up a business – plus they get the support of a big brand behind them.”
The NatWest fund key points:
- Loans of up to 70 per cent for new franchise businesses
- Two years free banking for new franchises
- Reduced fee of 1 per cent
- Up to 12 months of capital repayment holidays
- Loans for existing franchise businesses
- Access to an unlimited expertise from the dedicated NatWest franchise team