I own a Subway Franchise which I would like to refinance to access my equity in order to start my property development business. Unfortunately, my bank does not allow the equity I have to be used for anything other than my franchise business. Is there anyone out there that can recommend or lead me in the right direction?
Hopefully, someone can help.
Cheers
M
To confirm the security being offered is the franchise?
If so who is your current lender.
Franchising finance is a fairly limited field so will depend on a few things.
If property was used as security then different kettle of fish.
Richard Taylor | Australia's leading private lender
Hi Richard
The security I am looking to finance is the Subway Franchise. My current lender is Westpac.
Kind regards
micheled
Westpac are tight on these. If your financials and combo reports stack up you won’t always need a Val : – won’t cost too much to move.
You would be borrowing with a max term in line with balance of the lease agreement.Servicing is often an issue if the lease is under 10 years. If your balance sheet has a directors loan owing too you change the purpose of your application to refinance of Westpac and the other balance sheet debt. You then replace the debt to you on the balance sheet to bank debt and take your initial cash back out of the business.
Banker
Bankwest used to be good for major franchises too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
So did Anz but havent done a franchise loan for 6 months or so.
Richard Taylor | Australia's leading private lender
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