Financial franchise is boosting business success

The Interface Financial Group’s franchisees provide specialist funding services to growing small businesses

The saying goes that the more you have the better it gets. Whether that is true or not, the fundamental element for an individual to grow their capital is access to more capital. In times of tight credit, with banks not willing to accommodate would-be entrepreneurs to get started, how do you access such capital?

An unlikely place has turned out to be a franchise. Not an altogether conventional franchise, as one would expect, but a franchise that has been around for decades and operates on an international basis, including in the UK.

Fuel
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When a small business gets into its growth phase, it will invariably need additional capital to fuel that growth. Banks have always been the traditional providers of such capital. However, today’s environment means many banks are reluctant to work in the small business sector, which means entrepreneurs have to turn to the secondary marketplace to fulfil their needs.

Those that know how to navigate to that area will most likely find it takes them to financial services known as factoring and invoice discounting - solid and mature services that have helped thousands of businesses grow and succeed.

It seems the capital problem is thus solved. Often this proves not to be the case, as small businesses are sometimes just too small or new to be attractive to factors and discounters. If the conventional secondary choice is not available, entrepreneurs have to look to small business invoice discounters and spot factors - specialists that work outside of the conventional box and can tailor a solution for their individual clients.

Such a specialist is The Interface Financial Group, which offers its services to smaller emerging companies that often cannot find assistance in other areas. Their needs are quite modest initially, but grow as they expand.

The Interface service is similar in many aspects to that offered by much larger providers, but the audience is very much small business and the delivery method is unique in that it is delivered through a franchised network of offices. By servicing clients through a franchise base, Interface has proven it can respond to clients’ needs on a local and time sensitive basis.

This franchise is a good example of how a small business can grow when it has access to other people’s money. The franchise is also a good example of helping franchisees grow, inasmuch as Interface also extends a capital leverage programme to franchisees. This allows franchisees to use other people’s money - ie the franchisor’s - to rapidly grow their own franchise base.

Positive
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This multiplier effect has positive economic results for all concerned. Small business owners who can access Interface working capital for growth purposes ultimately grow their companies, which often results in job creation and the associated benefits that accompany that action. Franchisees accessing capital from their franchisor can, with the Interface model, accelerate their growth and that of their clients, while at the same time achieve significant returns on their own capital contribution.

Franchisees also receive extensive training, with the franchisor continuing to work alongside franchisees on a day-by-day, transaction-by-transaction basis. This added comfort is also supported by the fact the franchisor is sharing in the funding aspect of each transaction, not only as an adviser, but also from a capital involvement basis.