Snap-on Tools addresses franchisee finance challenges

FOR IMMEDIATE RELEASE
October 2011

Snap-on Tools addresses franchisee finance challenges
(credit where credit’s due)

With major financial institutions declaring that small business loans are still a very risky investment, it is no wonder that the pursuit of start-up business opportunities, including franchises, remain at disappointing levels.

In a first for New Zealand, leading franchise network Snap-on Tools has launched the Snap-on Finance Program; an initiative that provides financial support to prospective franchisees who are experiencing difficulty in receiving business loans from major financial institutions.

Despite Snap-on Tools having accreditation under the major banks’ franchise-specific loan programs, potential franchisees have found the loan process increasingly difficult, lengthy and sometimes impossible. The Snap-on Finance Program provides a complete finance package for a new franchisee with a minimum down-payment of $37,000 – making Snap-on one of the most affordable franchises for anyone contemplating their own small business.

The introduction of this program to Australia and New Zealand has recently commenced, with five new franchisees having already started under the program in Australia. Snap-on Tools New Zealand is currently in search of the first person to take advantage of this unique opportunity.

New Snap-on Tools franchisee Steve Marsh, the first person to use the Snap-on Finance Program, said “trying to get a loan from a bank to start my business turned out to be an absolute ‘spider’s web’. Using the Snap-on Finance Program meant I could get a stress-free loan quickly, from someone who really understands my business”.

The Snap-on Finance Program enabled Steve to cover essential business start-up costs including a new custom built Snap-on mobile store and product inventory, both of which can be provided to a new franchisee through a number of different business loans and payment plans which are all specifically designed to integrate with the Snap-on business plan and cash-flow model.

Ajit Ponnambalam, Managing Director of Snap-on Tools New Zealand, talks about the new program: “This program will allow us to invest in and support people who we see as being ideal candidates for a Snap-on franchise but are facing financial obstacles in starting their business. They can join Snap-on knowing they are getting a loan from a company that genuinely wants them to succeed and really understands their business.

“We think the fact that the security for the loans is limited to the assets of the franchise, rather than say, the franchisees house, demonstrates the level of confidence we have in our franchisees and in this program being a profitable and successful venture. This, combined with a quick and efficient application process, will prove to be a substantial incentive to prospective franchisees,” continued Mr Ponnambalam.

-ENDS-

About Snap-on Tools

Snap-on Tools is the world’s largest independent tool manufacturer and is renowned for its high quality and innovative products. With more than 90 years of manufacturing and distribution experience globally, which includes over 23 years in Australia, Snap-on is also one of the longest running franchise systems in the world. Snap-on is the benchmark for the finest quality tools and equipment demanded by professional tool users. Snap-on franchisees service customers at their place of business from their mobile store. Customers are typically professionals in the repair industries for trucks, boats, cars, light aircraft, earth moving equipment, motorcycles and much more.

www.snapontools.com.au

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