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 for
business start up . A bank loan can either be short, medium or long term
finance . The bank sets the fixed period over which the loan is provided either
in 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, asset
finance has become a popular choice since most of them lack credit rating to
qualify for other forms of finance . It entails borrowing against one of the
individual’s or company’s assets. Assets are either non – current which are
long term e.g land, buildings, furniture/ vehicles or current which are short
term e.g cash, debtors or inventories.

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3. Invoice Finance
  This whereby a company or business borrows against its invoices, with
the ability to obtain funds as soon as new invoices are created to lend the
debtors. Therefore the company is able to chase debts itself and acquire
finance.

4.SBA Loans( Small Business Administration) loans
  This are government guaranteed loans with long repayment terms and low
interest rates which are available for franchisees in most cases when certain
criteria are met . SBA loans are ideal for those just starting out with a new
business venture.

5.Crowd funding 
  This is the practice which funds a business company or project by
raising small amounts of money from a large number or a group of people which
can either be through a general gathering which is mostly known as ‘ harambee’
in Kenya or via phone.

6. Personal Savings
 To start up a
franchise the owner/investor could use his/her own money that was either saved
up over the years or can be obtained by the sale of personal assets. This is
the easiest way of finance as there are no strings attached to it meaning that
the business doesn’t need to pay any interest or give out any type of
dividends. However it is a big risk for the owner as all his personal
savings/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 interest
rates on loans you might want to try asking friends , family or neighbours for
the funding . This is an advantage since one gets an easier time in amending
payment plan when your financial situation changes.

8.Private
Investors

The franchisee
could also approach a private investor or venture capitalist for funds. Private
investors are more flexible than banks as they could either provide a fixed
loan or a line of credit. Line of credit is a agreement with the investor that
if a certain amount of more capital is needed by the franchisee, the private
investor will provide the franchisee with this capital. However the problem
with private investors is that they have a limited amount of capital thus
sometimes they will not be able to provide more capital to the franchise.