Homeowners who present the property as collateral have access to cheaper credit, better payment term and free use, including for investment in franchises.
The franchise sector is one of the fastest growing in Brazil in recent years. Between 2003 and 2014, the revenues of these companies increased more than 400%, according to the Brazilian Franchising Association. The number is impressive and, not surprisingly, the industry is attracting more and more investors interested in this business model, either to franchise their venture or to acquire an established franchise.
For those who envision undertaking this second option, accessing a good credit line is fundamental to ensure the sustainability of the investment. One option in this scenario is Home Secured Credit. The monthly interest rate on Lifecredi’s Real Estate Credit is 1.22% per month, plus the IPCA. To give you an idea, it is less than half of the interest rate charged to borrowers, which is close to 3%.
The property you present as collateral is valued and up to 50% of its market value can be converted into credit. Lifecredi offers credit in the order of $50 thousand to $1.5 million and the payment term is up to 15 years. In addition to the reduced rates, this Lifecredi mortgage loan product also benefits from its free use, meaning you can apply this feature wherever you want.
In the case of an entrepreneur who is going to invest in a franchise, credit may be employed at initial business costs, such as the license fee (also known as franchise fee), which is the amount paid by the franchisee to the franchisor to acquire the right to brand use. The credit may also serve as installation capital (point of purchase purchase, renovations, purchase of furniture, equipment and initial stock) or as working capital. In short, Secured Credit can be used to finance the first steps of the new franchise.
Franchises with good payback and lower initial investment
With acquisition cost of up to $ 50,000. In practice, it means that the owner of a property with value over $100,000, which is considered a low ticket in the real estate market, is already able to raise the initial bid and start the activity as a franchisee.
Access our online mortgage loan simulator and compare the rates, terms and conditions for the purchase of this free loan yourself.