CHALLENGE
- Mohammed is a young entrepreneur who has ambitions of becoming a restaurateur and opening his first restaurant as part of a franchise.
To make his dreams a reality, he needs finance for a full restaurant fitout, which includes both tangible and intangible assets, such as catering equipment, furniture, signage; and intangible soft assets, such as lighting and flooring.
Initially, Mohammed found it difficult to obtain the funding due to his business venture being a completely pre-trade business in the hospitality sector. Not to mention being on the back of Covid-19, so many lenders still had tight lending criteria.
After being turned down elsewhere, Mohammed reached out to Millbrook Business Finance to support as he had heard they had extensive experience in financing franchises.
Within the hour of placing his enquiry, Millbrook expert, Casey Botterill, had called Mohammed to discuss his options. Due to the nature of some of the assets, Casey knew they’d be trickier to fund, but with his expert knowledge of the market he knew a best-fit lender.
SOLUTION
New start businesses often find it extremely difficult to secure business loans but can get asset finance approved to start up their ventures.
This is why working with a franchise finance specialist, like Millbrook, can produce dividends, as they can skilfully help you to manoeuvre complex criteria and prepare your application for lenders so it’s right first time.
Casey knew that often start up franchises would prefer staged payments to cover the different stages of builds too, so was able to arrange this for Mohammed. Not only that, but they can also arrange the finance to include the franchise fee in the lending agreement.
RESULTS
- An unsecured asset finance deal was secured to start a dream business
Casey was able to secure £220k unsecured asset finance for the fitout of the new restaurant over a term of combination of 3 and 5 year terms.
This meant that Mohammed’s restaurant could be ready to open on time and is successfully serving its happy customers to this day.
“Casey has gone above and beyond on all fronts, and now my dream business has become a reality! He was always available to discuss anything and has done his utmost to help achieve the goals set out to help launch my business.”
Mohammed, Restaurant Owner
“It’s been a pleasure helping Mohammed to establish his first restaurant. Franchise finance can be a complex landscape to traverse, so I’m always pleased to use my wealth of experience to help businesses get off the ground.”
Casey, Business Finance Specialist
