1. want to try asking friends , family or

1. Bank Loans  A Bank loan in our country today is a commonly used form of loan forbusiness start up . A bank loan can either be short, medium or long termfinance . The bank sets the fixed period over which the loan is provided eitherin 3,5 or 10 years the rate of interest ,the timing and amount of repayment.2. Asset Finance  For small business or new projects or new companies coming up, assetfinance has become a popular choice since most of them lack credit rating toqualify for other forms of finance .

It entails borrowing against one of theindividual’s or company’s assets. Assets are either non – current which arelong term e.g land, buildings, furniture/ vehicles or current which are shortterm e.g cash, debtors or inventories.3.

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Invoice Finance  This whereby a company or business borrows against its invoices, withthe ability to obtain funds as soon as new invoices are created to lend thedebtors. Therefore the company is able to chase debts itself and acquirefinance.4.SBA Loans( Small Business Administration) loans  This are government guaranteed loans with long repayment terms and lowinterest rates which are available for franchisees in most cases when certaincriteria are met .

SBA loans are ideal for those just starting out with a newbusiness venture.5.Crowd funding   This is the practice which funds a business company or project byraising small amounts of money from a large number or a group of people whichcan either be through a general gathering which is mostly known as ‘ harambee’in Kenya or via phone.6. Personal Savings To start up afranchise the owner/investor could use his/her own money that was either savedup over the years or can be obtained by the sale of personal assets.

This isthe easiest way of finance as there are no strings attached to it meaning thatthe business doesn’t need to pay any interest or give out any type ofdividends. However it is a big risk for the owner as all his personalsavings/assets can be lost if the franchise doesn’t work out. 7. Borrowing from friends, relatives.  If one wants to avoid their home to the banks or paying large interestrates on loans you might want to try asking friends , family or neighbours forthe funding . This is an advantage since one gets an easier time in amendingpayment plan when your financial situation changes.

8.PrivateInvestors The franchiseecould also approach a private investor or venture capitalist for funds. Privateinvestors are more flexible than banks as they could either provide a fixedloan or a line of credit. Line of credit is a agreement with the investor thatif a certain amount of more capital is needed by the franchisee, the privateinvestor will provide the franchisee with this capital. However the problemwith private investors is that they have a limited amount of capital thussometimes they will not be able to provide more capital to the franchise.