Bank Financing

Financing for Small Medium Enterprise (SME) is always a challenge, however as a Muffin Break franchisee you can benefit from Muffin Break’s accreditation with all 4 of the “Big-Four” banks in Australia, (CBA, ANZ, Westpac and NAB).

What does Accreditation mean?

Accreditation is a process which Muffin Break undertakes with a particular bank where the bank in question “audits” or “reviews” how Muffin Break operates, the results we return and evaluates our plans for the future. This is quite a thorough process and is completed annually between Muffin Break and each bank, to ensure that all parties are kept updated.

In granting “Accredited” Status - the bank takes into consideration the performance of both Muffin Break and the franchise partner along with the “security” of the brand.

In general, financing for this type of business, takes about 12 weeks from start to finish. Whilst this is happening, all the necessary Muffin Break applications, checks and processes are running concurrently to the finance applications. This ensures you won’t be waiting for the completion of one before beginning the next application.

Why is Accreditation Good For Me as a Prospective Franchise Partner?

Most banks will lend money for a SME business based upon the tangible assets the business owner can put up to secure the loan, for example, equity in a house, cash, shares, etc. This is referred to as secured lending.

Where a franchiser is accredited, the bank may also allow someone to borrow against the inherent or perceived value of the business. This is known as unsecured lending.

Imagine you are trying to buy a business for $300K, if you have $150K equity in your house, most banks will only lend you $150K. In an accredited business, the bank has the option to lend the same again secured on the business, that way you can borrow the full $300K, which is 50% secured against the house (secured) and 50% secured against the business (unsecured).

Most banks work on a 50/50 split. In occasional circumstances the bank may be prepared to lend a little more than 50% unsecured.


What you will need:
A good understanding of both your financial situation, and the financial parameters of the business you’re looking to finance when you go and see the financial institution.

Financial situation:
Copy of your bank accounts, mortgages and any loans, credit cards and other financial arrangements you have.

Financial parameters:
- How much are you looking to borrow?
- How much do you project the business will turnover?
- What ROI are you projecting?


How much do I need to have for an initial investment?
Usually $150K – $200K in accessible assets (including but not limited to) equity in the home, savings, cash, shares.

How do I get financing?
Simply ask the Muffin Break Development Manager in your state to put you in contact with the relevant bank contact.

What options are available?
Ask the bank what is best for your individual situation.

Submit an enquiry.

The enquiry form below is for Franchise Partners who wish to purchase a Franchise.
If you wish to apply for employment in one of our cafés, please click here.

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