Franchise Information, advice and news.

All families and individuals need to take out a loan at some point in their lives, whether to redecorate the house, take that once-in-a-lifetime trip, send the kids to college, or just pay off some unexpected debts.

That's why investing in a loan franchise could be a great business opportunity. As Gaebler Ventures puts it, "lending money has been a good way to make money since, well, the invention of money".

Industry insiders claim the loans business offers faster and much higher returns than most other new businesses. This is because a loans franchise requires few people to operate and very little inventory other than cash. Indeed most loans businesses are now web-based, and will not require any office space.

But of course running a loans franchise is no easy task. Franchisees in this field need to have a lot more business acumen than those entering other sectors. While training and support will be provided by the parent company, financial know how and a good head for numbers is something that cannot be acquired in a few weeks, and therefore entrepreneurs with a strong financial background will be best positioned to make a loans business a success.

Organisational skills are also incredibly important. Not only will franchisees have to keep track of their clients' finances, but they will also be responsible for their own income and expenditure as a business. Similarly, good customer communication skills are a must have, since taking out a loan is an important decision for any individual or family and people are much more likely to go to a friendly, trustworthy loans business than one that is simply cash hungry.

Marketing and advertising is critical in this sense. Clients will only go to a loans business if they hear about it and are attracted by it. Going the franchise way means entrepreneurs can benefit from a trusted brand name and comprehensive marketing support, helping their business to stand out from the competition.

Franchisees in the loans business will of course have to conduct extensive research into the market to determine the level of consumer demand before diving into a deal. However, since a loans business can be operated online there is the potential to reach a worldwide audience, so location choice is perhaps not the most important consideration at play.

It is however important to check out the competition before singing on the dotted line. Different loan companies will be targeted at different types of people, whether it be families, businesses or students, and franchisees should make sure that by investing in a franchise they are filling a gap in the market, not entering an already saturated area.

But for those with the skills and experience required to run such a business, and the determination and commitment to make it work, a loans franchise could prove to be an extremely lucrative opportunity.

Copyright Adfero Ltd 2006

http://www.franchisedirect.com