Profiles of Success | Alternative Business Loans: Franchise Finance

This series outlines a number of clients of UCapital, who procured an alternative business loan through us, and went on to success in their pursuits. It outlines the type of client we can best help – and the reasons why the bank had little interest in doing so themselves.

Client A – Franchise Finance

As a franchise owner, Client A was in need of financing to refurbish their existing store. This amount was estimated at $80 000. However, the nature of the equipment being purchased for this necessary revival proved to be an issue with the bank.

As they were unfamiliar with the exact nature of the equipment that was needed, and a lack of security, the loan fell outside of the lending criteria of the bank, and this loan was rejected. This, despite the fact that the franchise had been a long-standing and reliable client of the bank. It also disregarded the legitimate potential of the business to grow, or the outright health of the business, as proven by their financial statements.

This particular episode indicated a fundamental flaw in the banking system: the inflexibility of a top-down approach. With most banks a member of a larger corporate structure, a community-based approach, or chances of individualism among bank managers, has been largely swept aside as chief officers have brought holistic changes to operating methods. With these broad changes comes less chance for lateral thinking, or flexibility, to the considerable detriment of aspiring businesses.

At UCapital, we say YES when the banks say NO. Our analysis of this successful business led to Client A receiving his necessary funding and refurbishing his business. This subsequently resulted in him requesting further funds to open his second franchise, through funds that were again provided by UCapital.

By adopting a more case-based, detailed, and flexible mindset than the banks, UCapital was able to provide this successful business with an alternative business loan, when he needed it most. We can do the same for you.

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