SMEs looking to franchise have Banjo ‘in their corner’

Non-bank lender Banjo Loans has announced that it is “in the corner” of Aussie small and medium-sized enterprises (SMEs) looking for franchise funding opportunities of up to $2 million.

According to the International Trade Organisation, Australia has more franchising outlets per capital than any other country in the world, second only to New Zealand, with around 90 per cent of franchises being developed in Australia.

In addition, data from the independent research and advisory firm FRANdata stated there are currently approximately 1,221 franchise profiles in the country.

In response to these findings, Banjo Loans – while leveraging the established intelligence of FRANdata – has launched an accreditation program in order to assess which franchise groups they have the capacity to support.

This program takes into consideration such factors, including the number of franchises a group may have and the length of time they’ve been operating in Australia.

Banjo Loans chief executive Guy Callaghan commented that the lender felt the “time is right” for it to “promote its lending capability for franchise-related needs”.

“The franchise sector in Australia presents a significant opportunity for growth, with many franchise businesses actively looking to expand, refinance, fit-out or acquire,” he said.

“Through our solutions, we’re aiming to solidify our presence with existing partners, while also opening conversations with brokers and referral partners who specialise in franchise business financing.”

Banjo is currently offering franchise funding solutions between $500,000 and $2 million, while providing “quick access to time-critical” funding.

Non-property backed loans of up to $250,000 only require bank statements and carry tailored terms with up to five-year repayment periods.

The risks and rewards of expanding during economic uncertainty

This announcement from Banjo comes as Callaghan recently highlighted the risks and rewards of small businesses expanding their operations during challenging economic times.

He said: “When the economy is challenging, it’s tempting for businesses to wait things out. But the right businesses, with the right strategies, can find themselves in a stronger position than their competitors if they’re willing to take measured risks.”

Callaghan added that economic downturns open up opportunities for SMEs willing to take strategic risks as many competitors tend to pull back, which could allow businesses to secure market share that may not have been available in more favourable conditions.

“Right now, a lot of businesses are playing it safe, and that opens the door for those willing to take the plunge. If you can expand responsibly when others are holding back, there’s a real chance to grow your market share,” Callaghan said.

[RELATED: Should SMEs expand or hold back in a slowing economy?]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.