Franchise Finance

Franchise Finance is a loan given for setting up a new franchise. Franchise Finance is given up to the limit of franchise fees. If the borrower is looking for an extra loan, over and above franchise fees, fixed assets will be required for mortgage. For franchise finance, the company will enter into an agreement with the franchisor for its loan security. The franchise will give its franchise fees as a security. In case of default, the NBFC will have a demand over the franchise fees, taken by the franchisor as their arrangement. If the franchisor is ready to buy back franchise infrastructure in case of default, the NBFC will extend a loan against infrastructure as well. However, for this arrangement, the franchisor will have to agree to buy back all the infrastructure equipments at pro-rata bases prices. Various loan options under franchise loans will be as given below:

Types

• Loan for franchise fees payment
• Infrastructure finance
• Product procurement finance

Exclusive Loan Features

• Franchise fees as a collateral
• Tri party agreement between Micro Caps, the franchise (borrower) and the franchisor
• Collateral of property or assets if applicable
• Personal guarantee of the franchise owner
• Lien on accruals
• Loan amount from $5000 to $125,000
• Tenure 3 years to 5 years
• Attractive interest rates
• Customized repayment schedule with lower EMIs in starting
• Loan disbursement within 7 days