Bank Financing
Financing for Small Medium Enterprise (SME) is always a challenge, however as a Muffin Break franchisee you can benefit from Muffin Break’s accreditation with some of the major banks.
Why is Accreditation Good For Me as a Prospective Franchise Partner?
Most banks will lend money for a SME business based upon the tangible assets the business owner can put up to secure the loan, for example, equity in a house, cash, shares, etc. This is referred to as secured lending.
Where a franchisor is accredited, the bank may also allow someone to borrow against the inherent or perceived value of the business. This is known as unsecured lending.
Imagine you are trying to buy a business for $300K, if you have $150K equity in your house, most banks will only lend you $150K. In an accredited business, the bank has the option to lend the same again secured on the business, that way you can borrow the full $300K, which is 50% secured against the house (secured) and 50% secured against the business (unsecured).
Most banks work on a 50/50 split. In occasional circumstances the bank may be prepared to lend a little more than 50% unsecured.
STEPS TO FINANCING
What you will need:
A good understanding of both your financial situation, and the financial parameters of the business you’re looking to finance when you go and see the financial institution.
Financial situation:
Copy of your bank accounts, mortgages and any loans, credit cards and other financial arrangements you have.
Financial parameters:
- How much are you looking to borrow?
- How much do you project the business will turnover?
- What ROI are you projecting?
FREQUENTLY ASKED QUESTIONS
How much do I need to have for an initial investment?
Usually $150K – $200K in accessible assets (including but not limited to) equity in the home, savings, cash, shares.
How do I get financing?
Simply ask the Muffin Break Development Manager in your state to put you in contact with the relevant bank contact.
What options are available?
Ask the bank what is best for your individual situation
SUBMIT AN ENQUIRY
The enquiry form below is for Franchise Partners who wish to purchase a Franchise. If you wish to apply for employment in one of our cafés, please click here.
Frequently asked Questions
Where can I find ingredients and nutritional information?
For information on the ingredients and nutritional content of our products, please refer to our menu here. This information is based on our standard product recipes and variations may occur due to seasonal changes and supplier differences. Please note that any customization to our standard menu items may affect the nutritional content and allergen information provided.
If you have a food allergy, please talk to a member of our team before ordering, as recipes and ingredients may be updated from time to time.
Why are there price differences between Muffin Break stores?
Every Muffin Break store is individually owned and operated. While Muffin Break have regional RRP, the final price is up to the discretion of the individual franchisee.
Where can I find ingredients and nutritional information?
For information on the ingredients and nutritional content of our products, please refer to our menu here. This information is based on our standard product recipes and variations may occur due to seasonal changes and supplier differences. Please note that any customization to our standard menu items may affect the nutritional content and allergen information provided.
If you have a food allergy, please talk to a member of our team before ordering, as recipes and ingredients may be updated from time to time.
Why are there price differences between Muffin Break stores?
Every Muffin Break store is individually owned and operated. While Muffin Break have regional RRP, the final price is up to the discretion of the individual franchisee.
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