How to make the most of funding your franchise – a broker’s perspective
Australia is home to more than 1,221 franchising networks, with the sector generating over $110 billion in turnover each year. However, recent data from the Franchise Council of Australia and FRANdata shows that, as of March 2025, many franchise business owners report feeling the strain, particularly when it comes to securing finance. In fact, access to funding has emerged as a significant challenge across the sector.
Given the scale and significance of this industry to the Australian economy, it raises an important question: how can franchisees access the most suitable funding to support their growth and operations – and how can finance brokers connect franchise owners to the right funding partner?
Offering valuable insights to franchise owners on how to borrow smarter, Banjo Loans‘ Strategic Partnerships Manager, Frances Rikard-Bell (pictured), outlines three key reasons why partnering with a non-bank lender can offer long-term benefits for both brokers and franchise businesses.
- The time and resources to uncover a franchises’ needs
A strong understanding of the franchisees’ business needs, how the franchise got to where they are and where they want to continue evolving to in the future is crucial to determining what funding they need. It takes time to uncover the intricacies within the books beyond the profit and loss statements, with many non-bank lenders having the resources to do so.
Ms Rikard-Bell reiterates the importance of taking time to get to know the client, “When speaking with a client, go a little deeper than surface level numbers to see how you can support their growth. As franchises are cashflow-reliant, it’s important their brokers and lenders are able to help them.”
- A more streamlined and faster approval process
Faster approval times and processes ensure franchises can get back up and running in no time. While non-bank lenders still have policies and systems in place, there are fewer hurdles to jump through to receive funding. Lenders can also present various financing solutions that can provide a lifeline during cashflow crunches or unpredictable obstacles.
“If an instrumental part of your client’s business breaks down, such as a coffee machine in a cafe, they’ll need funding very quickly so they are not impacted by customer relationships and revenue changes in the long run and can continue with their day-to-day,” said Ms Rikard-Bell.
- Easy points of contact and relationship management
Non-bank lenders can provide easy relationship management and a single point of contact for you and your clients, making it easier to get the answers you need without jumping through hurdles.
For more information on how brokers and clients can get the most out of their franchise funding, visit the A Broker’s Guide to Unlocking Franchise Funding webinar via the Banjo Loans website.
