How to Qualify for a Start-Up Loan to Buy a Franchise in Australia
Last updated: 30 March 2025
Buying a franchise can be an exciting pathway into business ownership. You’re getting access to a proven business model, brand recognition, and training — but the upfront costs can feel overwhelming. That’s where a start-up loan comes in.
If you’re wondering how to get approved for finance to purchase a franchise, this guide will walk you through exactly what lenders are looking for and how to improve your chances of approval, even if it’s your first business.
Can You Get a Business Loan to Buy a Franchise?
Yes — but franchise finance is different from getting a loan for an existing business.
Lenders know franchises offer structure and support, but because you’re starting from scratch, they assess things differently. You’ll need to show that:
The franchise is a credible and established brand
You’ve done your homework and can present a solid plan
You’re financially stable or backed by other income or savings
This isn’t about having all the answers — it’s about showing that you’re prepared, responsible, and clear on how the business will work.
What Lenders Look for in Franchise Start-Up Loans
Here’s what lenders typically want to see:
1. A Strong Business Plan
Lenders want confidence that you’ll succeed. A good plan includes:
Why you chose the franchise
The market demand in your location
How much you expect to earn (and spend) in year one
How you’ll handle challenges like cash flow dips or seasonal slowdowns
Don’t worry about writing the perfect document — just focus on being clear, realistic, and backed by research.
2. Your Experience and Background
You don’t need a business degree — but if you’ve worked in the industry, managed people, or run a team, highlight it. If you’ve never owned a business before, lenders might want to see:
Steady employment history
Personal savings
Support from a guarantor (like a family member)
3. The Franchise Agreement
Lenders prefer dealing with well-known brands. Include a copy of your franchise agreement (or draft) to show:
Start-up costs
Ongoing fees
Franchise support (e.g. marketing, training)
This shows them you’re investing in something structured and backed by a bigger system.
4. Fit-Out and Equipment Quotes
Whether you’re opening a café, gym, or service-based franchise, you’ll likely need funding for:
Equipment (coffee machines, ovens, tech, tools)
Shop or workspace fit-out
Vehicles (for mobile or delivery-based businesses)
5. Your Financial Position
Your personal credit score and bank statements matter — especially if the business hasn’t started yet. Lenders will look for:
Steady income (if you’re still working)
Clean credit history (or clear explanations for any defaults)
Evidence you can afford repayments if the business starts slow
Tip: Even if you’ve had issues in the past, there are still options available. It’s about finding the right lender.
How Much Can You Borrow to Buy a Franchise?
This depends on the franchise and your personal situation. Most start-up loans for franchises range from $30,000 to $250,000.
With some lenders, if you’ve had over 2 years business owner experience in the same industry, you can borrow up to $75,000 with no financials required, and even more if you provide some documents or a deposit.
What If You Don’t Qualify with a Bank?
Traditional banks often have stricter requirements — but that doesn’t mean it’s the end of the road.
At Casey Asset Finance, we work with over 40 lenders (including many that specialise in franchise start-ups). That means:
No need to go bank-to-bank explaining your story
No unnecessary paperwork
No pressure to fit a mould
We help you prepare, compare your options, and apply with the lender that suits your goals — not the other way around.
Can You Get Equipment Finance as Part of the Loan?
Absolutely. Equipment finance can help fund things like:
Commercial kitchen gear
Gym equipment
Point-of-sale systems
Vehicles
The benefit? This kind of finance is often faster and doesn’t always require tax returns or financials — which is perfect if your business hasn’t launched yet.
Final Tips to Improve Your Approval Odds
Get your personal credit file checked — and clear up anything you can
Have a basic budget showing how much you’ll live on until the business kicks off
Speak with someone early — lenders love seeing you’ve had support preparing
Disclaimer
This blog provides general information only and does not constitute financial advice. Always speak to a finance professional or accountant before making any financial decisions. Eligibility and loan approvals are subject to lender criteria and change over time.
Ready to Buy a Franchise and Need Finance Support?
We help everyday Australians get into business with clarity, confidence, and the right finance behind them. If you’re considering buying a franchise, we’d love to support you through the process.
Tap the Apply Now button at the top of this page to get started- fast, obligation-free, and won’t affect your credit score.
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If you would like to have a chat and explore your options today — even if you’re just in the research stage - feel free to send me an email or give me a call.
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