How to Secure 100% Funding for Your Haus Maids Franchise

 Opening a franchise like Haus Maids is a significant investment, and one of the first challenges many potential franchisees face is securing the necessary funding. Fortunately, there are resources like the British Business Bank and its Startup Loans program designed to support entrepreneurs, including those looking to invest in franchising.

What is the British Business Bank?

The British Business Bank was established to help drive growth and innovation in the UK’s small business sector. One of its key initiatives, the Startup Loans program, launched in 2012, offers personal unsecured loans to individuals aiming to start or expand their businesses. This program is particularly useful for franchisees, as it aligns well with the structured and scalable nature of a franchise like Haus Maids.

Unlike traditional business bank loans, which typically require the borrower to secure 30% of the loan amount themselves, the Startup Loans program can cover up to 100% of the needed capital. This makes it an attractive option for entrepreneurs who may not have substantial savings but are passionate about starting a Haus Maids Franchise.

How the Startup Loans Program Supports Franchisees

Franchising is a unique business model, often requiring lower risk and providing greater security than starting an independent business. The British Business Bank recognises this and has made the program flexible enough to accommodate franchise investments.

For instance:

  • Loan Amounts: Individuals can borrow up to £25,000. For franchises with multiple partners or directors, up to four people can combine their loans, providing a total of £100,000 in funding.
  • Personal Loans for Business Purposes: The Startup Loans offered are personal, unsecured loans. This means you don’t need to provide collateral, but you must demonstrate good credit and a sound business plan.

 Why Franchisees Should Consider the Startup Loans Program

The Startup Loans program has several advantages over traditional funding options:

  • No Deposit Requirement: Since these are unsecured loans, you don’t need to provide a deposit, which can be particularly helpful for those who may not have a large amount of capital saved.
  • Quick Process: The loan application process typically takes between two to three weeks. In some cases, individuals have received their funds in as little as two days!

Eligibility and Key Considerations

To qualify for a Startup Loan, certain criteria must be met:

  1. Credit History: While the program is designed to be accessible, applicants need a reasonable credit history. Issues like unpaid County Court Judgments (CCJs) or being under a debt management plan could disqualify you, although past issues that have been resolved may not be a barrier.
  2. Business Plan: Applicants must provide a comprehensive business plan demonstrating the viability of their franchise, this is something Haus Maids will help you with.
  3. Affordability: One of the biggest considerations for loan approval is whether the applicant can afford both the loan repayments and the costs of running the business, even if the franchise takes time to become profitable.

One of the most critical aspects of the loan application is ensuring that the franchisee has considered their personal survival budget—the amount of money they need to cover personal expenses while the business is growing. The program can help cover this initial working capital, providing a cushion during the crucial first months of operation.

Common Pitfalls to Avoid

While the program is incredibly beneficial, there are some common challenges potential franchisees need to be aware of:

  • Unresolved Credit Issues: People sometimes have unexpected issues on their credit report, such as old mobile phone contracts that result in a CCJ. It’s crucial to clear these issues before applying.
  • Gambling on Bank Statements: A less obvious factor, but regular gambling transactions on bank statements can raise red flags for lenders.

Your Path to Franchise Ownership

For those considering a Haus Maids franchise but worried about funding, the British Business Bank’s Startup Loans program provides a practical and accessible solution. By offering unsecured loans that can cover 100% of your franchise investment, this program eliminates many of the financial barriers that prevent aspiring entrepreneurs from pursuing their dreams. With our guidance, we will help you to apply using our preferred supplier who understands our business, we can help you navigate the process smoothly and secure the funding you need to make your Haus Maids a success.

For more information on how to start your journey with Haus Maids and explore funding options, contact us today