Posted:14-June-2013
Low cost finance now available for budding Franchisees
Having identified the right kind of franchise, the next key step on your entrepreneur journey is to be clear about how you’re going to fund your business, plus engage all the support you can to make sure it becomes a real success.
A new way of financing new business ventures was recently launched by the Government under a scheme called ‘Start-Up Loans’. It was created in order to lend young entrepreneurs the money, and provide the help they need, to start their own business. Loans can be anything from £250 up to £25,000 at a competitive, fixed rate of interest. Expert mentoring and advice is also available alongside every loan, with assistance on everything from creating a winning business plan to managing the company.
The Start Up Loans scheme was launched following a campaign by Sir Richard Branson, and Start-Up Loans are now provided by a network of Delivery Partners across the country. Start-Up Loans in the North East & Cumbria are delivered through a consortium, which includes Project North East (PNE) , Virgin Money, and Virgin Unite. Details of delivery partners in other parts of the UK can be found via the national Start Up Loans website.
‘Screw it lets do it’
Over 60 young entrepreneurs, aged 18 – 30, have already received a Start-Up Loan, allowing their new business dream to be realised.
The consortium in the North East and Cumbria is calling for more young entrepreneurs to come forward with their business plan and make an application, as there still remains over £600,000 of funding to be awarded in this area during 2013.
PNE are the consortium partner responsible for arranging and making the loan and Richard Clark, Director of Workspace at PNE, said: “The search is on for the next young enterpreneurs. The first batch is now in business and we’re now looking for the next group with big ideas, lots of committment, a business plan and a well thought out idea which could involve a franchise of some sort. Training and advice are also available, so if young people have all of these things and are just sitting on their great idea, they should waste no time in coming forward.”
This echoes what Sir Richard Branson said recently in his speech on Commonwealth Day in Westminster Abbey: “Having the will to say ‘screw it, let’s do it’ and make things happen is what sets entrepreneurs apart. It takes bravery to start a business, but people with enterprising spirit who seize chances when they come along will be the ones who drive the economy and make a difference in the future. You don’t need business degrees or vast experience to begin a business: you need a great idea.”
How Much Can I Borrow?
This will be agreed during the process, however Start-Up Loans will lend anything between £250 and £25,000.
Payback Terms
You will be required to pay back the loan within three to five years at a fixed rate of interest. There is no interest free period, and interest is calculated on a monthly basis.
Who is eligible
The scheme is currently designed to encourage young entrepreneurs, so at present you need to be aged 18-30 to qualify.
Additional Support
As well as the loan, you will receive access to business support and expert mentoring from senior staff at Virgin or other similar organisations. Applicants will also be eligible to enrol in resources from a number of Start-Up Loans' Global Partners, all of whom are detailed on the Start-Up Loans website, and communicated to you once you have received your loan. For example, 6 months free access to Regus’ Virtual Office Package and access to most of their business lounges across the world. In addition, applicants will also receive a free copy of the Start-Up Loans kit, which offers all the guidance you need
How does it work?
Start-Up Loans North East will work with you to identify what stage you’re at in thinking about a franchise and help you to present your business proposal in the best way to get your loan. If successful, you will receive the funding for the loan which will be administered by PNE directly. Mentoring is available with the loan, giving you additional support and guidance as you go through an entrepreneur’s journey.
