What are banks lending

MrMatisse

Im just wondering if i had 50% of the cash i needed to open a fast food joint
(Part of a major international franchise) would i be able to borrow the other 50% from a bank? I have no other security and with the current climate im unsure there is anyone out there who would lend for a project like this.

Has anyone got any recent experience in trying to borrow such an amount? Who is still lending? ( if any)

Thanks!!

Bandara

Really-Stressed wrote: »

Im just wondering if i had 50% of the cash i needed to open a fast food joint
(Part of a major international franchise) would i be able to borrow the other 50% from a bank? I have no other security and with the current climate im unsure there is anyone out there who would lend for a project like this.

Has anyone got any recent experience in trying to borrow such an amount? Who is still lending? ( if any)

Thanks!!

I cannot see there being much of a problem with this, banks have obviously tightened up on lending but they still are allocating budget to lending to the major brand name operators, mainly as they are generally solid businesses, once its a good location and you are a suitable candidate with experience in this area. (If you going into them with a redundancy cheque and coming from an office job I think their reaction will be very different though).

I depends on what chain you are talking about though, if its an O'Briens etc your going to struggle imo. A more general all day/night concept is far better in the banks eyes at the moment (ie fast food).

I went very far down the road with a large pizza takeaway company recently and had 2 sites offered to me by them. The bank had no issue with funding 60% of the investment (about 300k), I eventually decided no to go ahead with it for other reasons but as I say, I approached both BOI and Ulster bank and they were happy enough.

Good luck with it.

Lplated

I think securing funding from any bank is a combination of their experience of you, your business plan and the security and/or cash input from you. 50% seems relatively good.

I know that Ulster Bank like to sell themselves as 'the franchise bank' - even if you don't have an account with them - you might like to test their advertising.

MrMatisse

Unfortunately i would be heading from an office job into this, not through redundancy ( Well not yet anyway !), good to know with a some work experience in the industry i do have a chance of getting the finance.

Cheers!