How do I finance my franchise?
You want to fulfill your dream and become an entrepreneur. With our Kaldi franchise formula, we will help you realize this dream! But what about the finances? We list the possibilities here!
Financing a Kaldi franchise
How you will finance your Kaldi franchise is of course one of the big questions to ask when you are going to become a franchisee. After all, when starting a franchise, you need to have a start-up capital to pay for the franchise formula you choose.
You pay an entrance fee (for intensive support such as barista and assortment training and, for example, support in preparing a marketing plan) and financial bridge.
This can be a major barrier for many. That is why we at Kaldi are happy to help you find the appropriate solutions so that you too can participate in the Kaldi franchise formula.
Below we have described several popular financing methods that may help you take the next step.
Different types of financing
Hoe financier ik mijn franchise?
You want to fulfill your dream and become an entrepreneur. With our Kaldi franchise formula, we will help you realize this dream! But what about the finances? We list the possibilities here!
If you are currently employed and want to make the move to entrepreneurship, it is wise to think about the necessary start-up capital in advance. Make sure you have sufficient start-up capital yourself or look within your own circles to see if there are opportunities to borrow.
Being able to fully finance yourself is, of course, the most ideal scenario. But we understand that this is not possible for everyone. Still, bringing in your own start-up capital is a good idea, because it means less money has to come from external sources (such as a loan). Therefore, this also makes you less dependent on these external sources when you start the franchise.
Be careful when borrowing your start-up capital: Borrowing money costs money! Before borrowing money from an outside party, it is always wise to carefully examine your own personal situation first.
By dropping your private expenses and reinvesting all sales directly back into your business, in many cases you can provide your own start-up capital. Then external capital is not needed at all to get started.
Qredits is a national microfinance organization founded to help startup entrepreneurs garner financial arrangements. They focus mainly on those entrepreneurs who find it difficult to obtain financing in traditional ways, such as a loan from a bank. Qredits provides various loans of up to €250,000 with terms between one and 10 years. When taking out a loan through Qredits you will also receive personal coaching to make your new business a success!
Investors are generally willing to take more risk than banks, and look at the company differently. For example, they are much less looking for the company's past or solid collateral. Investors look more to the future and the potential returns. A trendy term also often used these days is “Business Angel". These are former entrepreneurs who bring with them a lot of knowledge in addition to money. Through a.o. BAN Nederland or Business Angels Europe you can get in touch with interested investors.
The KVK also provides free advice and offers helpful articles to delve further into the world of investors. Prefer a well-known person as an investor for your franchise? Then be sure to ask around in your own network of colleagues, friends and family.
In the current financial climate, finding financing is quite difficult for a starting franchisee. The Dutch government has therefore created some schemes to help you as a starter. One popular scheme is the Credits Microfinancing. This nationwide microfinance organization is for the startup entrepreneur who has difficulty getting finances the traditional way, such as applying for a loan from a bank. Through this organization, you can get loans with terms between one and ten years. They also help you with personal coaching to make your business a success!
The most accessible way to find investors is through crowdfunding. You post your “project” with the required amount on a kind of online marketplace, and anyone who wants to can invest in the project. Collins Group, for example, is a well-known player in crowdfunding for SMEs. The Financial Markets Authority (AFM) has built up a handy register which can be downloaded for free from their website.
Finally, there are other forms of start-up loans. Entrepreneurs who are disabled may qualify for a special loan from the UWV. Also, in some cases, the UWV can be a guarantor for other loans. Read more about this on the website of the UWV.
Kaldi will help you
During our first meeting, we will of course talk about financing and what your options are.
From Kaldi, we offer our expertise and knowledge as a franchisor. We think with you, offer advice and coach you through the entire process. After all, we are entering into a partnership, so from Kaldi we are ready to answer your questions!