Bank to use £100 million to aid franchises
By: Hannah McLaverty-Williamson
08 February 2011
New loans totalling around £100 million are to be made available in the franchise sector, in an effort to encourage more people to get involved in business franchise opportunities.
It is hoped the decision to offer funding so people can take advantage of the best franchise opportunities, will kick-start growth and create jobs. The fund by NatWest and the Royal Bank of Scotland could finance as many as 1,800 new franchise businesses, in addition to creating 24,000 new jobs.
Peter Ibbetson chairman of small business at NatWest and RBS told Small Business News: "Everybody wants to see banks funding business growth, as well as helping new businesses get off the ground to create jobs, this is exactly what this fund will deliver."
"The industry has shown itself to be virtually recession-proof, so for the many people left out of work by the recession franchising is a great way to start up a business - plus they get the support of a big brand behind them," he added.
The director general of the British Franchise Association, Brian Smart said: "The fund is a great way of encouraging new entrants into this vibrant sector. The UK franchise industry has performed well in recent years and we welcome the further investment to build on this momentum."
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