Finance helps franchisee on path to success | Franchising | Small Business Connect

Franchisee Pieter Matlou received R750 000 from the fund.

When Pieter Matlou wanted to start his own computer retail franchise he already had the experience, the expertise and the drive – all he lacked was the finance. But that all changed when he read an article in a local industry magazine.

Having worked as a technical manager at a Matrix Warehouse branch, Matlou had been toying with the idea of buying his own Matrix franchise for years, but acquiring the finance proved a huge stumbling block.

Says Matlou: “It (getting finance) was quite a daunting process. I had tried several banks but to no avail.”

One day he picked up a South African Franchise Warehouse magazine and stumbled across a story about a new franchise funding initiative that had been launched by Business Partners, called the Franchise Fund.

The fund, officially launched last month, is an initiative between Business Partners, the Development Bank of Southern Africa and the National Treasury’s Jobs Fund.

Matlou immediately realised that he stood a good chance of securing a loan under the fund, as he complied with most of the criteria.

Namely, experience, attitude and basic business management skills that the funding institution required from its applicants.

In November last year he forwarded his application to Business Partners.

He did not know that in the space of just three short months his life was about to change forever.

In February, he received confirmation from Business Partners that his application for R750 000 in finance to buy his own Matrix Warehouse store in Lakeside Mall, Benoni had been successful.

“I think they (Business Partners) were persuaded by my determination and passion as well as my experience. I was more than a good enough candidate,” says Matlou.

To secure the funding he put down an own contribution of 20% of the total financing.

The fund requires a minimum contribution of 10% from the franchisee.

He says what impressed him most about Business Partners was the way they assisted him through the initial application process.

He also appreciated the business skills training he received from the business financiers.

Business owners interested in applying for funding from the franchise fund can go to www.businesspartners.co.za

011 918 8130.