Trying to find the relationship between banks and franchising and banks and franchisees. How are banks aproaching to the franchising? Special departments, special products, etc.
Could you help me what are you meaning by Franchising ? Act as a bank under one banking institution?
Md Masudul Hasan Shobhon I mean financial products (loans) banks are giving to potential franchisors and franchisees
To extend credit, modern day bank looks into first the type of entity, purpose, need, borrower etc. In my personal opinion, there should be no binding to extend credit to the franchisors and franchisees. You may just go through the credit policy of your country's banking system. Hope that you would get your answer much broader way. Kindly check, type of business, supplier's credit principles, sectors, finance entity, size and embargo to extend credit to certain businesses etc. Extending credit to a holding company is prohibited in most countries, as if they divert fund, bank can't tress. I AM FOLLOWING THIS QUESTION and please feel free to mention me, if there anything new or alternative answer-interesting; I can learn from.
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