Case Study – Buying the best business for you

Buying the best business for you

At CFI we love helping people kick-start their dreams of running their own business. One of the things we're always keen to know is 'Why is this the right business for you?'

*Stock image used

Aaron worked in his family's tyre business in his late teens and early twenties, before moving to New Zealand. Whilst Aaron's always loved working on cars, what he really wanted was to run his own business.

Fast Facts

Aaron wanted to buy a business. A Bridgestone franchise was the perfect opportunity for him.

  • Aaron was not a property owner
  • This would be Aaron’s first time as a business owner / manager
  • Some prior experience helped us understand why this business was a good fit
  • As a franchise business, the training and support of the franchisor helped to get Aaron started

The Scenario

Aaron had experience in the tyre sales / repair industry and good mechanical aptitude. He’d been working two part time jobs when the opportunity to acquire a Bridgestone franchise came up.

The Positives

  • Aaron had relevant experience and demonstrated his motivation and work ethic with his current jobs.
  • Bridgestone is a proven franchise network offering all of the appropriate support and training to get new franchisees started.
  • Aaron and his wife had a good saving history and were able to invest a reasonable amount of saved funds into the business purchase.
  • As an existing business within a respected franchise network there was no big ramp-up required to be able to service their commitments.
 

The Challenges

  • Aaron didn’t hold any formal mechanical qualifications
  • The business had limited tangible equipment to offer as security
  • Aaron and his wife were not property owners
  • Running their own business would be something new to them but they believed in their skills to make it work.

The Results

CFI was able to approve Aaron’s finance and facilitate his purchase of the business. The entire process was done on-line and paperless, so was able to fit around Aaron’s other commitments without him having to take time out. 

Names in this case-study have been change to protect customer privacy – Learn more

Case Study Callouts

Prior industry experience helped CFI understand why the applicant wanted to buy this business

A respected franchise network offered training and stability

Not being a property owner wasn't an impediment to getting a loan from CFI, even for a brand new ABN.

Want to learn more about CFI Business Loans

Flexible vehicle finance in a hurry – No problem

CFI's fast and flexible finance helped to get this tradie back on the road.

When Joseph's work van gave up the ghost, he needed finance fast! To make matters worse there was still a little bit of finance owing on the vehicle.

*Stock image used

Joseph knew exactly what sort of van he needed, and there were several comming up for auction the next day, he just needed to know that he could get the finance. As a prior CFI customer, Joe knew just who to call. CFI was able to approve him for finance in less than two hours!

Fast Facts

Joseph needed vehicle finance with a bit of flexibility

  • He wanted approval to buy at auction
  • There was still some finance owing on his old vehicle that needed to be refinanced
  • He’d need funds to get vinyl wrapping and signage on his new vehicle
  • As a tradie he planned to fit the vehicle out himself but wanted some extra cash to spend on the fitout materials

The Scenario

Joseph is an exeperienced jack-of-all-trades, he needs his van to be working every day. His old van had quit with a small amount of finance still owing and Joe needed a new vehicle fast. He wanted to buy his new vehicle at an auction the next day and he needed some extra funds to fit it out.

The Positives

  • Joseph could show good payment conduct for his previous finance commitments and he had clear credit.
  • He was planning to buy a good quality asset and it was absolutely core to his business.
 

The Challenges

  • Joseph needed an approval in time to bid at auction the next day, with enough flexibilty around price, van type, age, etc. to allow him to bid for the best deal that suited him.
  • There was still a little finance owing on the old van that needed to be paid out.
  • Joseph needed additional funds to cover vinyl wrapping, signage, and materials for a custom fitout Joe would install himself.
 

The Results

CFI was able to give Joseph an approval within a matter of hours. Funding was available for the van the following day, including approval to payout the previous finance and for the money that Joe would need to spend to turn his new-to-him van into his perfect mobile workshop.

Case Study Callouts

Approval to buy at auction wasn't a problem, with plenty of flexibility for the customer to select the van that best suited his needs

Showing good conduct on previous finance contracts (with CFI or other lenders) counts for a lot

Rolling some associated costs into the deal is generally ok, so long as they make sense and servicing is evident.

Want to learn more about CFI Business Loans

Mobile franchisee and beyond

Franchise Accreditation Benefits

Hydraulink are just one of many franchises accredited with CFI. See how their franchisees benefit...

Dylan had been working as a Hydraulink franchisee for five years when the opportunity to acquire his own territory arose. With CFI’s help Dylan quickly went from employee, to mobile franchisee, to employing staff in his own workshop.

Car Service Hoist

Franchise network growth made easy

Dylan was a qualified fitter already working in the Hydraulink network. Franchisors know that their existing network is the perfect breeding ground for new franchisees.

Hydraulink are a leading manufacturer of hose and fittings, with over 400 service points throughout Australia and New Zealand. They’re also one of more than a hundred franchise groups that are accredited with CFI finance, giving their franchisees (and potential franchisees) streamlined access to funding.

Fast Facts

Business Loans from CFI Finance helped Richard to:

  • Buy stock, and fit-out a custom mobile workshop when first starting out as a franchisee
  • Go from employee to business owner
  • Expand from mobile mechanic into bricks-and-mortar-premises to meet increased demand.

The Scenario

Dylan was a quilified fitter working in the franchise network when the opportunity arose to purchase his own territory. He had some funds to put towards the puchase but needed to keep most of his cash aside for working capital. A few years after buying his territory Dylan was looking to expand with business premises that would allow him to carry bulkier stock and provide a greater range of services to his customers.

The Positives

  • Dylan was qualified to work hands-on in the business and had experience in the franchise network.
  • Hydraulink is an accredited franchise network with CFI, ensuring CFI could offer streamlined access to funds and less hoops to jump through.
  • When Dylan came back for funds to expand his business, his history with CFI and strong performance as a franchisor made it easy to approve a second loan.

The Challenges

  • Dylan didn’t own property, and would be seen by many financiers as a poor bet simply because he didn’t have any business trading history. For CFI Finance however these things didn’t count against Dylan.

The Result

CFI Finance provided Dyaln with his first loan in 2019 to help finance stock and fit-out of his mobile workshop van. When Dylan came back looking to expand his business into fixed premises the process couldn’t have been simpler.

Case Study Callouts

As an accredited franchise network Hyrdaulink franchisees (and potential franchisees) have streamlined access to higher funding amounts

Relevant qualifications and industry experience counts for a lot with CFI Finance

Not being a property owner wasn't a barrier to obtaining finance

Names in this case-study have been change to protect customer privacy – Learn more

Where to next?

Get Pre-Approved

Apply online for finance in just a few minutes. Getting your finance in place should be one of the first steps on your franchising journey, whether you’re starting your first business or expanding your franchise footprint.

Tools & Calculators

Get and instant Online Quote, check out our How Much Can I Borrow calculator, or plan your startup costs with our Cost & Funding Scenario tool.

Useful Resources

We’ve pulled together a range of useful resources to help you get started, from Business Plan templates, to Financial Forecast tools, you’ll find it all on our Customer Resources page.

Franchise Experts

CFI Finance are the franchise finance experts. Learn more about what makes CFI the first and best choice when it comes to franchise finance here.

Franchise Accreditation

Accreditation is about driving network growth, providing streamlined access to funding for new and existing franchisees. If you’re a franchisor, take a look at the benefits of getting accredited with CFI.

Finance Products

CFI has a range of Finance Products, from Business Loans to Equipment Finance and Working Capital. Find out more about our products and how CFI can help grow your business.

How can we help?

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Things you should know

CFI Finance is an independent finance company operating in Australia and New Zealand. We’re not a broker, so when you deal with CFI you’re dealing directly with the decision makers.

Any advice is general in nature only and does not consider your individual circumstances or objectives. CFI recommends seeking professional legal and accounting advice before undertaking any significant business transaction, including obtaining finance.

Lending criteria, as well as terms and conditions apply to the products and services CFI provides. For more information talk to one of our Lending Specialists.

Buying an existing franchise

This entrepreneur purchased an established Bakers Delight franchise.

Richard served his apprenticeship with Bakers Delight some 20 years ago. He'd worked in the franchise network previously but he had been out of the baking industry for some time. When the opportunity to own his own establised bakery arose CFI Finance was there to help make it happen.

Richard had been out of the baking industry for a few years but he was well experienced in running his own business and as a baker. Even better, Richard already knew the ins and outs of the Barkers Delight franchise system.

Richard had saved a small deposit but he didn't own his own home and he was still paying off an old personal loan under an arrangement with the financier. For CFI all of the positives easily outweighed the negatives.

Fast Facts

A Business Loan from CFI Finance helped Richard to:

  • Buy an existing franchise business in a succesful network
  • Leverage his previous experience in baking and business management
  • Get past a couple of dark smudges on his credit file

The Scenario

Richard had completed his apprenticeship as a baker some 20 years ago, but since then he’d worked in a number of other industries. He had some tangible assets but didn’t own his own home.

Richard could see the opportunity within an existing Bakers Delight franchise, and how he could make it even better, he just needed to find a finance company that could see that too.

The Positives

  • Richard knew the industry and the franchise network
  • He was buying into a successful franchise network and could see the potential for growth and improvements in the store he was buying
  • Richard was willing to put everything he had into the business to make it work

The Challenges

  • Richard’s credit file had a small black mark from an old debt, but he was still taking responsibility for it and paying it off.
  • Richard and his partner didn’t own their own home (which may have helped but for CFI Finance was by no means a deal breaker).

The Results

Richard was able to complete the purchase quickly with a Business Loan from CFI Finance. After taking over the bakery he took on the role of head baker and has employed another baker full time to increase capacity. We hope that soon Richard looks to join the ranks of multi-unit franchisees, and we’ll be there for him when he does.

Names in this case-study have been change to protect customer privacy – Learn more

Case Study Callouts

Not being property owners wasn't a barrier to obtaining finance

Prior experience in the industry, as well as Richard's overall life and management experience, counted for a lot with our credit team.

A great credit history is a great thing, but often it's OK to not be perfect.

Want to learn more about CFI Business Loans

Buying out a business partner

Flexible finance to buyout a silent business partner.

Bryce and his wife had been running their takeaway restaurant successfully for 2 years. When the opportunity came to buy out their silent partner they weren't sure they were ready. CFI was there to help.

Bryce and his wife know how to run their business, having purchased it in 2021 in partnership with an investor, they'd increased turnover and built a loyal customer base.

Although they had some savings, much of their share of the profits had been reinvested in the business. With a Business Loan from CFI Finance they were able to buy out their silent partner and take full control of their growing enterprise.

Fast Facts

A Business Loan from CFI Finance helped this couple to:

  • Buy out their silent partner
  • Pay for the buyout from future profits
  • Acheive this despite an outstanding ATO tax bill

The Scenario

Bryce and his wife bought their takeaway restaurant in early 2021, along with the help of a silent partner / investor. In late 2022 they had the opportunity to buy out their partner but they weren’t sure they could achieve it; the business had some existing finance for kitchen equipment and was also paying off a small ATO debt.

The Positives

  • Bryce and his wife knew their business well and had shown they could run it successfully
  • The business was profitable and could service a loan
  • Bryce and his wife had good personal credit files and low levels of personal debt

The Challenges

  • The business had some existing finance over most of the kitchen equipment so couldn’t offer it as security
  • There was a small ATO debt which was slowly but steadily being paid off
  • Bruce and his wife didn’t own property and had limited savings

The Results

A Business Loan from CFI, secured over the unencumbered assets of the business, allowed Bryce and his wife to buy out their business partner and take 100% ownership of the business.

Loan payments were covered by a portion the future business profits, ensuring that cashflow was maintained.

Names in this case-study have been change to protect customer privacy – Learn more

Case Study Callouts

Not being property owners wasn't a barrier to obtaining finance for this husband and wife team

A small ATO tax debt (under arrangement) wasn't a big problem

It's OK to have other finance commitments, so long as we can see how the business will manage its commitments

Want to learn more about CFI Business Loans

Building an on-premise laundry

An investment in an on-site laundry delivered immediate cash savings.

This family owned 62 room motel saved nearly $120,000 a year by setting up their own on-site laundry. An asset finance solution from CFI Finance paved the way.

Cattia Andreas, Managing Director of The Clarence on Melville (a Best Western property in Albany) knew significant benefits could be acheived by bringing their laundry on-site, but it meant a signifcant investment in equipment and instalation. With CFI Finance it couldn't have been easier.

Fast Facts

An Asset Finance solution from CFI helped this family run hotel:

  • Acquire quality laundry equipment and bring their laundry on-site
  • Immediately reduce costs and pay for the equipment from the savings
  • Improve service levels and flexibility

The Project

Cattia wanted to install an on-premise professional laundry to accommodate the needs of the 62 room property. This would help reduce the increasing cost of their outsourced laundry contract and provide more options to the business regarding their linens.

 

The Benefits

  • Turn the laundry into a profit-center
  • Eliminate high charges and restrictions on using non-hire linens only
  • Choice of own quality linens, which can be sold to guests at the end of its hotel cycle
  • Assurance that linens meet the highest hygiene standards
  • Control on over stock-take allows for loss reduction
  • Ability to monitor and control costs tightly

 

The Results

Cattia estimated the total cost of outsourcing their laundry over a one year period was $167,285. After the installation of the onsite laundry, the estimated operational costs over a one year period are $49,025.

This results in a saving of $118,260 in the first year alone!

*All costs are calculated based on 67% occupancy.

What our customer had to say...

The process was simple and straightforward, the application was completed online with a few simple clicks and I received an instant quote on the day of the inquiry.

Approval was received within 24 hours and funds were paid within 24 hours of the invoice being received.'

We were able to access a high standard of equipment and saved on the initial purchase costs

Want to learn more about our Asset Finance Products? Or how CFI Finance can help fund projects for Accommodation providers?