HSBC UK has announced its first ever £500 million fund for franchise businesses, as part of its commitment to help British businesses innovate and grow as the country looks to rebound from the coronavirus pandemic. The fund is part of a wider £15 billion lending fund to support small and medium-sized enterprises (SMEs) across the UK.
Seth Brown, Senior UK Recruitment Manager, said: “This is an exciting development from HSBC, and will give confidence to potential franchisees who are considering launching their own franchised business in 2021 and beyond.
“We are proud of the relationship and reputation we’ve built up with the banks, including HSBC, and work very closely with potential new franchisees throughout the business planning and funding stage to create a plan that is realistic, and establishes the right level of investment. I’d encourage anyone interested in discussing their funding requirements to contact us to find out more.”
A long-term supporter of the franchise industry, HSBC has a dedicated franchise team, providing specialist knowledge and support focused entirely on the industry. Its team offers a central helpdesk, offering advice and liaison with local banking managers and funding of up to 70% of start-up costs.
Andy Brattesani, Head of Franchise, HSBC UK said: “We’re very proud of our support for the franchise industry in the UK – not just during the Covid-19 crisis but for over 30 years. And with franchising numbers at a record high in the UK, our commitment to the industry is a strong as ever.
“To further support the ambitions of franchise businesses in the UK…we’ve launched our first ever ring-fenced £500m lending fund.
“With more people wishing to run their own business, we want to encourage them to consider franchising as a more accessible way of starting a business, using a tried and tested concept.”
Pip Wilkins, CEO, British Franchise Association, said: “Through every economic downturn franchising has continued to hold a solid share in the market. We have seen networks unite and use collective resources to survive impacts of the pandemic, many are now stronger businesses as a result! However, the industry would not be where it is today without the funding institutions such as HSBC UK. The £500m SME fund for franchise businesses is a significant investment that will unlock the potential for thousands of people to grow in this diverse industry.”