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Athlete's foot franchise loan?!

Posted: Wed Sep 30, 2015 8:13 am
by TomandHarry
My friends and I are interested in starting our own sportswear store and while looking through a few options and ideas, we found out that there are Athlete's Foot Franchise loans available! How much are we allowed to borrow through these?

Re: Athlete's foot franchise loan?!

Posted: Wed Sep 30, 2015 11:57 am
by Otto Dargan
Hi TomandHarry, welcome to the forums.

The Athlete's Foot franchise is a recognised Australian brand so some lenders may be willing to allow you to borrow more than the standard Loan to Value Ratio (LVR) on an Athlete's Foot franchise loan.

Here are some of the standard lending criteria for this:
  • You can borrow up to 50% of the total business costs or up to 60% depending on the strength of your business case for new or existing stores.
  • You may be able to borrow up to 100% of the property value with an existing residential property as security.
  • The loan term is typically 10 years or the length of the franchise agreement.
  • If you can provide a property as security then the loan term will usually be 25 to 30 years i.e. a standard loan term.
  • You'll need to provide a business plan and profit forecasting in order to get approval.
  • Low doc options aren't available on this type of loan.
  • You may be able to qualify for commercial interest rate discounts.
Please note that as a minimum, you'll need to provide the lender with two years' personal tax returns and two years' Business Activity Statements (BAS). A clean credit history is also required.

You can learn more about this on our website. You can also discuss this directly with one of our franchise loan specialist mortgage brokers by calling 1300 889 743 or by completing our free online assessment form.

Cheers,
Otto

Re: Athlete's foot franchise loan?!

Posted: Wed Sep 30, 2015 8:02 pm
by TomandHarry
We should be able to get a residential property as security so we're hoping to get a good deal on a Athlete's foot franchise loan. Will call your office by the end of the month to discuss our details and find out what our options are. Thanks.