Banks are the main financing channels for franchised enterprises. According to the nature of funds, it can be divided into three categories: working capital loans, fixed assets loans and special loans. Special loans usually have specific purposes, and their loan interest rates are generally favorable. Loans are divided into credit loans, secured loans and discounted bills. Among them, the term (pledge) loan is a formal contract signed between the bank and the franchisor, which stipulates that the franchisor will use a certain amount of funds (principal) and pay a certain percentage of interest within a specific period (loan period).
2. Financing lease
Financial leasing, also known as financial leasing, is a new operation mode of product marketing and asset management, and also a way of asset financing. It is the loan relationship between ownership and use right, that is, the lessor (owner) rents the leased property to the lessee (user) for use within a certain period of time, and the lessee pays a certain lease fee in installments according to the agreement of the lease, and obtains the ownership of the leased property at maturity. Financial leasing actually achieves the purpose of financing in the form of melting things. For small and medium-sized franchise enterprises, financial leasing is a combination of financing and finance, integrating trade, finance and leasing. It is flexible and simple to operate, and it is a very effective financing method to improve the financing efficiency of enterprises. Commonly used are operating lease, financing lease, installment payment and after-sales lease.
3. Venture capital
When the developing franchisor needs extra capital to make his business plan successful, but lacks collateral or relevant ability and qualification to repay the principal and interest, or when the franchisor wants to carry out traditional debt financing from commercial banks and the franchisor needs to prove that he can repay the principal and interest, the franchisor can seriously consider venture capital as one of the sources of enterprise financing. However, the real problem that franchisees need to face is that it may be difficult for franchisees to obtain debt financing because they need capital to make up for "soft costs", including personnel costs and marketing costs.
Legal basis: Article 34 of the Law of People's Republic of China (PRC) Commercial Bank, commercial banks conduct loan business according to the needs of national economic and social development and under the guidance of national industrial policies.