Why buy a franchise that banks believe in
If you are planning to buy a franchise, funding is often one of the biggest considerations. In a recent interview on Smile FM, Engela van Loggerenberg unpacked why franchising is regarded as one of the most bankable ways to enter business ownership.
Banks favour franchises because they are considered far more secure than independent startups. When you buy a franchise, you are investing in a proven model with established systems, brand recognition and a track record. From a lender’s perspective, that reduces risk significantly.
Why banks support franchising
Most major banks have dedicated franchise desks staffed by specialists who understand the franchising environment. These experts assist applicants in structuring deals and assessing affordability. This means that when you buy a franchise, you are not navigating the financing process alone.
The structured nature of franchising makes it easier for financial institutions to evaluate performance forecasts and funding requirements. Compared to launching a completely new concept, a franchise offers a tested recipe for success.
Understanding the investment
Engela highlighted that at Cash Converters Southern Africa, a turnkey franchised business in 2026 is approximately R4.5 million. The term turnkey is important. It means the business is fully set up and ready to operate, including fixtures, fittings and the necessary infrastructure.
Understanding where your money goes is critical when you buy a franchise. Investment is typically divided between setup costs such as shopfitting and equipment, and working capital to support daily operations.
Cash Converters Southern Africa encourages a 50/50 funding structure. Ideally, at least half of the total investment should be available as unencumbered capital, with the balance financed through a financial institution. This balanced approach strengthens your funding application and sets you up for long term stability.
Franchising is a seriously bankable business model. If you want to buy a franchise and own your own business within a proven system, structured funding support makes the journey far more achievable.
Follow us on LinkedIn