Franchise owners to get a lending boost
The Franchise Council of Australia (FCA) and OnDeck have teamed up to help franchise owners boost their cash flow.
FCA members will be able to access MYOB Loans Powered by OnDeck, giving franchisees a vital resource for unsecured lending.
Franchisees will now be able to find financing for things such as renovation, relocation and cash flow – which may not be available through more traditional means.
Cash flow in particular has appeared time and again as a major pain point for small businesses in Australia, franchises included.
In fact, MYOB research from last year found that late payment had a negative emotional impact on 52 percent of small business owner respondents – let alone the business impacts of being paid on inconsistent terms.
Previous analysis of loans made by OnDeck found that 29 percent of applicants took out loans for ‘working capital’ reasons.
In addition, many franchisees face unique business challenges because they need to renovate on a regular basis – as per the terms of their franchising agreements.
With the franchise sector in Australia reaching $146 billion, the loans have the potential to make a valuable contribution.
“Australia has more franchising outlets per capita than the USA, which rightfully makes us the franchising capital of the world,” said OnDeck CEO Cameron Poolman.
Despite the size of the sector, many franchisees can find it difficult to access capital for their business despite the size of their parent franchises.
“Access to finance is not always easy for our members,” said FCA CEO Damian Paull, “and this partnership with OnDeck Australia and MYOB takes advantage of new technologies and systems that understand small business and franchising needs.”
Loans are issued by On Deck Capital Australia Pty Ltd ABN 28 603 753 215. Loans subject to lender approval. MYOB holds a 30 percent stake in OnDeck Australia and has a referral agreement under which it earns a commission on loans referred to OnDeck Australia.