Seven questions to settle before a franchise finance application

A lender will have its own credit policy and evidence requirements. Before that assessment begins, an applicant can still improve the internal consistency of the story being presented.

1. Where does the own contribution come from?

Identify whether funds are savings, sale proceeds, a shareholder contribution or another source. Check that the amount and account ownership align with the application.

2. What cash remains after the contribution?

Separate business working capital and household reserves from the amount committed to establishment.

3. When do repayments begin?

Do not assume a grace period. Record the first payment date, interest treatment during drawdown and any conditions that must be met before funds release.

4. Which opening costs are still estimates?

Name site works, equipment and deposits that have not yet been quoted. Explain the contingency instead of hiding uncertainty in a rounded total.

5. Does the lease timing match finance timing?

Rent-free periods, beneficial occupation and fit-out access are not interchangeable. Confirm when each cash obligation begins.

6. Are the sales and margin assumptions traceable?

Record whether figures come from franchisor information, your own local research or an adviser. Avoid presenting an illustrative case as guaranteed turnover.

7. Do all documents tell the same story?

Compare the application form, personal statement of assets and liabilities, business plan, cost schedule and supporting statements. A changed contribution or debt balance should be updated everywhere it matters.

These questions do not predict approval. They help ensure that the lender assesses the intended case rather than losing time on preventable contradictions.