Could a Start Up Loan Help You Start Your Haus Maids Business?
One of the first questions many prospective franchisees ask us is:
“How can I fund my Haus Maids franchise?”
The good news is that you don’t necessarily need to have the full investment sitting in savings before considering a Haus Maids franchise.
A number of funding options may be available, including the Government-backed Start Up Loans programme. Depending on your individual circumstances and the level of funding required, this could potentially provide some or even all of the finance needed to get your Haus Maids business started.
All lending is, of course, subject to eligibility, credit checks, affordability and approval by the lender.
What is a Start Up Loan?
Start Up Loans are Government-backed personal loans designed to help people start or grow a business in the UK.
Importantly for anyone considering Haus Maids, franchise businesses can be eligible for Start Up Loan funding.
At the time of writing, eligible applicants can apply for between £500 and £25,000, with repayments made over a period of one to five years.
The loans are unsecured, meaning applicants are not normally required to provide an asset or guarantor as security for the loan.
Start Up Loans currently have a fixed interest rate of 7.5% per year, with no application fee or early repayment fee.
As the loan is made personally to the applicant, you remain personally responsible for repaying it.
Could I Fund the Full Haus Maids Investment?
Potentially.
Because an individual can apply for up to £25,000, a Start Up Loan may be sufficient to fund a significant proportion – and in some circumstances potentially all – of the initial investment required for a Haus Maids franchise.
However, this will depend on your individual circumstances, the territory you are purchasing, the total amount of funding required and how much finance you are approved for.
There is no guarantee that an applicant will receive the full amount they apply for, and every application is assessed individually.
We therefore encourage prospective franchisees to look not only at the initial franchise investment, but also at their working capital and personal financial requirements while building their business.
What Will the Lender Look At?
Receiving a Start Up Loan isn’t simply a case of applying for £25,000 and receiving the money.
Your application will be assessed, and you will need to demonstrate that both you and your proposed business are suitable for the finance.
This will normally include consideration of:
Your credit history
Applicants are subject to a credit check as part of the application process.
Affordability
The lender will consider whether you can realistically afford the monthly loan repayments alongside your existing personal financial commitments.
Your business plan
You will need to demonstrate how your Haus Maids business will operate and how you expect it to develop.
Your cash-flow forecast
You will need to show that you have properly considered the expected income and expenditure of the business.
Your personal survival budget
Starting any new business takes time. It is important to consider how you will meet your own household and personal financial commitments while your Haus Maids business is being established.
You Don’t Need Previous Cleaning Experience
One of the advantages of joining Haus Maids is that you are not expected to arrive as an experienced professional cleaner.
As a Haus Maids franchisee, your role is to build and manage a professional domestic cleaning business.
That means developing your customer base, recruiting and managing your team, maintaining service standards and growing the business within your territory.
Our franchise model, training and ongoing support have been developed to help you do exactly that.
How Haus Maids Can Help
If you decide that you would like to pursue a Haus Maids franchise, we can provide information about the business to help support your funding application.
This can include information about the Haus Maids business model, franchise costs and the financial assumptions you will need to consider when preparing your business plan and forecasts.
We can also introduce prospective franchisees to organisations familiar with franchise funding and the Haus Maids model.
However, any application for finance is between you and the finance provider. Haus Maids does not provide financial advice, arrange or guarantee finance, or guarantee that an application will be successful.
Is Using Finance to Start a Franchise Unusual?
Not at all.
Many people looking to start a business don’t want to – or simply aren’t able to – fund the entire investment from their own savings.
The important question isn’t simply whether you need finance. It is whether the proposed borrowing is affordable for you and whether you have sufficient resources to support yourself while the business develops.
That’s something we encourage every prospective Haus Maids franchisee to think carefully about before proceeding.
Could a Haus Maids Franchise Be Right for You?
If you’re considering starting your own business but are concerned that you don’t have the full investment available in cash, it may still be worth exploring the opportunity.
A Start Up Loan or another form of franchise finance could potentially provide a route to funding your investment.
The first step is to understand the Haus Maids business, the investment involved and whether the opportunity is right for you.
Download our Franchise Information Pack to find out more about Haus Maids, the investment, our business model and the support we provide.
Alternatively, if you’ve already read our Information Pack and would like to explore the opportunity further, we’d be happy to hear from you.
Funding information is provided for general information only and does not constitute financial advice. Finance is subject to application, eligibility, credit and affordability checks and lender approval. Terms, interest rates and eligibility criteria may change. Prospective franchisees should check the latest information directly with the relevant finance provider before applying.
