Finance Guidelines for Obtaining Management Rights Businesses
The best advice here is to use finance brokers or finance bankers who have expertise in the
Management Rights Industry.
It is not good enough to just go to your local bank branch as they may not understand the principles involved.
The Management Rights Finance Broker/Bank you approach must have had experience in the industry to ensure you get the best advice possible.
The amount of borrowing available through several specialist lending institutions which view this type of business favorably as a secure, low risk business. Lenders will generally apply one of four gearing calculations to management rights funding:
1. Unit value x gearing ratio – usually 80%
2. Management Rights Value x gearing ratio – usually less than equal to 65%
Or
3. Unit and Management Rights Combined Value x 65% to 70% gearing.
4. Management Rights Businesses without a unit require more funding by the Buyer/Purchaser as Bank usually only lends less than 50%
Flexible loan terms with up to 30 years on home loans and up to 15 years on business loans
and interest only options are also available.
Please note that the criteria for the specialist Management Rights Financier/Broker/Banker on
Management Rights lending is the ability to repay.