Standard Bank is committed to serve the franchise sector in Namibia. As loyal supporters of ethical franchising in rest of Southern Africa we have established successful partnerships with established franchisers, and have assisted many franchisees to become an integral part of the franchising system in the Standard Bank Group Through a customer centric approach, our goal is to "partner" with you as franchisers and franchisees, to set you up for success in managing and growing your business. We deliver this promise by servicing existing relationships through our national footprint of committed relationship teams We take pride in understanding customer's needs. Whether buying your first franchise remodelling your existing franchise or growing your franchise business to become a multi-store owner. We match your needs by assisting you with a holistic bank offering which range from funding custom made pricing packages to customised payments and collection solutions

What is franchising?

A franchise is an agreement or license entered into by two parties, the franchisor and the franchisee. It gives a person or group of people - the franchisee - the rights to market a product or service using the trademark of another business (the franchisor)

  • The franchisor has the obligation to provide these rights and generally support the franchisee, both initially and on an ongoing basis
  • The franchisee has the right to market the product or service using the operating methods of the franchisor
  • The franchisee has the obligation to pay the franchisor certain fees as agreed to in the franchise agreement

Franchising principles

Our franchising solutions are based on three fundamental principles:

  • Exceptional service and support - our relationship managers in Namibia manage the franchise relationships, and are supported by product specialists and experienced support staff in the franchise sector
  • Sector understanding - our franchising desk is staffed by a team with specialist knowledge and understanding of the various industry sectors in the Franchising market
  • Transactional products - we offer a wide range of payment and collection services which include from business current accounts to vehicle and asset finance, we’ll customise a solution to meet your franchising needs perfectly


Before deciding whether to franchise your business, the following need to be considered:

Credibility and a proven concept: The concept needs to be proven. The business must have a good track record and an experienced management team

Profitability: The franchisee and franchisor should obtain a reasonable profit. The franchisor should receive a return on the investment in the development costs. The franchisee should receive a return on the investment in setting up an individual outlet

Uniqueness: The business to be franchised needs to have a unique selling point that will allow it to differentiate its products or services from those of its competitors

Sustainable and growing demand: The franchisor needs to ensure that demand exists in different areas, and that the product has staying power. The market for the product or service should be growing and the demand must be sustainable

Intellectual property and systems: The business needs to have a set of systems, procedures, expertise, skills and know how that optimises every operational step

Transfer of skills: It must be possible to train prospective franchisees lacking experience in the sector within a reasonable period

Support infrastructure must be in place: The franchisor must provide intensive initial and ongoing support to franchisees. This requires manpower, facilities, a veritable set of skills and absolute dedication to the creation of win/win outcomes

Accreditation checklist:

  • The latest disclosure document
  • Franchise or license agreement
  • Completed background information form
  • Latest audited financial statements and management accounts for the franchisor and any related subsidiaries
  • Operations manual content summary; group family tree



Potential franchisees should consider the following before committing to an opportunity:

  • Will I be happy operating on my own but in accordance with rigid guidelines?
  • Does the particular type of business suit my personality and interests?
  • Can I comfortably acquire the knowledge and expertise to operate in the chosen industry?

Packaged product offerings:

  • Business current accounts
  • Business revolving credit plan
  • Medium term loans
  • Vehicle and asset finance
  • Payment and collection solution
  • Electronic banking facilities
  • Insurance

Franchisee relationship management

  • Dedicated relationship manager

Sector understanding

  • In country franchising sector

Application for finance checklist:

  • Personal balance sheet/s of shareholders/directors/members
  • Pro-forma balance sheet (start-up)
  • Cash flow, income and expenditure statement (projected for 1 year period)
  • Latest annual financial statements and management accounts (if existing business take-over)
  • List of assets to be financed
  • Proof of owners/shareholders/directors/members contribution
  • Security offered/available

Additional supporting documentation:

  • Comprehensive business plan and SWOT analysis
  • Identity documents of all partners/members/directors
  • Feasibility study
  • Curriculum vitae's for each member of management
  • Company/corporation registration documents
  • Partnership/shareholders/members agreement (if applicable)
  • Copy of the signed lease agreement for premises to be leased
  • Copy of the signed franchise agreement
  • Copy of the signed sale agreement (existing business)
  • 6 months bank statements of all members, shareholders

What we offer

We offer a number of time-saving and convenient banking solutions for franchises. Our key focus is on delivering transactional efficiency and innovation, progressive online solutions and effective process management.

We also provide a number of value-added services for franchisees and franchisors, based on a holistic understanding of your requirements. In doing so, we will provide you with cost-effective solutions that will assist you to manage your operations, cash flow and transactions.

Our competent and knowledgeable relationship teams are always available to assist you. Our commitment to consistent high levels of customer service ensures that all your banking needs are taken care of quickly and efficiently.

Banking products and services for franchises include:

Transactional products:

  • Business Current Account - our business account is simple to manage, and allows you to transact in the way that is most convenient for you, from traditional branch banking to using our advanced electronic services
  • Electronic banking services - we offer a wide range of specially designed electronic banking products to meet your business requirements. From payments to collections, electronic banking is a cost-effective alternative to traditional branch banking
  • Credit card merchant services - Standard Bank Card Division will meet all your needs in respect of electronic credit card terminals, and will provide technical backup and on-going support


  • Business revolving credit plan - provides a line of credit that can be used when required. The credit limit is restored automatically after 25% of loan amount is repaid. You only repay the monthly minimum payment
  • Medium term loans - a flexible term-finance structure for the financing of both capital assets and initial working capital requirements. The repayment term is negotiable and may range from 24 to 60 months
  • Vehicle and Asset Finance - whether you need to buy property, finance equipment or fund operating expenses, we offer a number of financial solutions

Value added:

  • Financial planning - Standard Bank Financial Consultants (SBFC) are based at all our branches and are available to assist you with your personal financial planning as well as your business planning.
  • Insurance - Standard Bank Insurance Brokers (SBIB) will assist you with insurance to cover your business assets at competitive rates

Cash solutions:

These are just a few of the financial products and services we offer to franchisees and franchisors. For more information, refer to your Business Banking relationship manager or contact our Franchise Desk

Contact us

Manager Franchise - Anthea Witbooi
[email protected]

Merchant services
[email protected]

Credit card client queries
[email protected]

Customer care retail - Business online queries
[email protected]


Why do I need to put up my own money to finance a franchise?

There are a few reasons for this:

  • If you can show that you have saved money, it indicates your ability to handle finances well
  • If borrowed capital is the only source of finance, the cost of paying back interest can place undue strain on your business’s cash flow
  • Unless you have a meaningful stake in the business, your commitment could be suspect, as you would be able to walk away in the event of the business hitting a rough patch; and
  • For us to invest in your business, you need to show that you are willing to invest in it yourself

Why do I need to provide a business plan and what goes into it?

A business plan is an indispensable requirement for going into business, as it forms the basis of your planning. When compiling a business plan for raising finance, ensure that it covers the following:

  • Your own credentials - as the operator of the business, we will place reliance on you to ensure that the business succeeds. We also need to know that you will be hands - on in terms of managing the business, or if not, what the credentials of the operating members of the business are
  • Competitors - provide an analysis of the competitors in your area and an estimate of realistic market share
  • Area analysis - indicate the research done to determine the potential of the geographic area, the demographics and income levels in the area, as well as macro and micro factors influencing the catchment area and consumer behaviour
  • The basis for financial projections must be clearly explained and all assumptions must be included
  • If the franchise is bought from a previous owner and the new owner is forecasting a turnaround, the turnaround strategy must be explained

How do I do a cash flow projection?

The ability of your franchise to generate adequate cash flow is an important indicator of its viability; unless the cash flow generated by your franchise can comfortably sustain on-going operations, you may run out of cash and will have to close your business’s doors

To project the cash flow of your business, calculate the amounts of money you expect to receive during a specific period and deduct the amounts you expect to pay out. Remember that while a strong cash flow is important, it is not an indication of profitability. Growing sales can generate positive cash flow for a while even if the business operates at a loss, but this is not sustainable

What types of funding for franchises are available?

There are various types of funding you might wish to consider, however you should be aware of their respective advantages and disadvantages. 

Types of funding include:

  • Soft loans - You might have the opportunity to borrow funds from family or friends. For these funds to qualify as soft loans (also known as off-balance-sheet financing), it needs to be unsecured, open-ended (no fixed repayment date has been set) and possibly interest-free. Keep in mind that should your business fail, the lender/s will most probably not receive any of their funds back. Although it is an informal agreement, you should enter into a written agreement drawn up by an attorney, which sets out the terms of the loan and the rights and obligations of the parties. If you don't, the lender could, for example, decide to ask for his money back at a time when your business’ cash flow cannot support this request
  • Taking on a business partner - You could invite others to join you in the venture through forming a partnership, a CC or a limited company in exchange for a share in the business. Taking on partners has the advantage of sharing the burden of building the business; however, you need to select the individual/s involved with care by ensuring that they share your vision for the business and possess complementary business skills
  • Overdraft - An overdraft is intended to take care of short-term dips in your business’s cash flow. This need may arise around month-end for example, when you need to make payments but your customers haven’t paid you yet. Overdrafts should only be used to supplement working capital requirements (short-term finance), never to fund fixed assets (long-term finance)
  • Term loans – Term loans are used to fund long-term capital needs, and are usually granted for a period of up to 60 months. Should you wish to terminate the loan before the agreed term has expired, a penalty payment will apply)
  • Asset finance – The purchase of capital equipment and cars can be financed through asset finance, which can be structured to suit your business' specific needs. The expected life of the item to be financed influences the repayment period, with the added advantage that the item to be purchased can serve as surety for the loan, at least in part

How do I go about applying for a franchising loan?

Following your initial discussions with your Business Banker, you will be asked to complete a loan application. As part of the loan application, you will be asked to submit various documents, your business plan and a cash flow projection.

Applying for finance

Few people have the means to buy a franchise for cash or to finance the working capital out of their own pocket - most will approach their bank as a finance partner. From the Bank's point of view, and in terms of assessing our risk, we will take steps to evaluate whether the franchise you want to buy is reputable, which will also help you with your pre-buying investigations

What the Bank will need from you

When you apply for a loan, we will consider the overall risk of the franchise. This means that we will look at the financial position of the business, the security or collateral you are offering, the business environment, and the management expertise in the business. We will also look at your personal credit record. Here is a full checklist of the information we will need from you:

A Business plan - Before we will consider financing, you must provide us with a comprehensive business plan. Writing a business plan is an important discipline that forces you to think of nearly every aspect of your proposed business, and to map your way forward. For guidelines on "How to write a winning business plan" click here.

Franchise documents-You will be required to provide the following:

  • Disclosure document
  • A signed franchise agreement
  • Standard Bank application form to finance a franchise business

Personal information, including:

  • Identity documents of all shareholders/members/partners/directors
  • Curriculum Vitae’s for each member of management
  • The full names and capacities of the parties signing legal documentation and loan agreements
  • Personal statements of assets and liabilities of all the partners, shareholders, members or directors
  • The CV of each member of management

Official documents required may include:

  • Company/close corporation original registration documents
  • Signed/draft lease agreement for premises to be leased
  • If you are buying an existing franchise, a copy of the agreement of sale has to be provided

Financial information required:

  • A detailed breakdown of the finance requirements
  • Updated business financial statements, if buying an existing franchise how many years
  • Your sales and purchases budgets
  • Projected income and expenditure statement
  • A 12 month cash flow forecast and the basis on which these figures were derived at
  • Specimen or “Pro-forma” balance sheet of the business at start-up date
  • The amount of your own cash contribution and source of these funds
  • If you don’t have a business account with us, you must make available your bank statements for past six months

Please note the above list is not exhaustive. Speak to your Business Banker for a full list of requirements, contact our Franchising Desk