KBank franchisee programme
Kasikornbank's franchisee programme encourages corporations to franchise their business to provide opportunities for people who dream of owning their own businesses.
Pipavat Bhadranavik, first senior vice president, said yesterday KBank has lent Bt3.5 billion since the franchisee programme was launched over five years ago, and none of those borrowers have become non-performing loans.
The bank can support these people with loans, since a franchise is a low risk business, he said. The franchisee loan portfolio at present is Bt2 billion.
The bank is focusing on lending to individuals who want to start a business by joining 80 well-known franchise brands. Franchises are a choice for those who want to run their own business amid economic uncertainty.
Corporations could improve their businesses to be franchises, while the bank will partner with them to support franchisees with loans. The bank will develop a programme to support individuals or company employees who want to be small business owners without requiring collateral or business experience.
Lending to franchisees is unlike lending to general start-up businesses, which are required to show at least one to two years of operations and bank statements.
Amid the economic uncertainty, a franchise is a kind of business that can be convenient to implement at nominal risk due to the fact that a franchise usually comes with a precise business plan.
Meanwhile, the bank joined forces with TOT yesterday to provide loans to early-retirement employees at special rates.
Under the programme, the bank will offer a credit line of 80 per cent of total investment. Borrowers are not required to provide statements. They will be offered a 1-percentage-point discount on the interest rate throughout the term.
For those early retirees with no plan to own a franchise business, the bank will offer financial planning through the K-Expert programme to help them manage their money. KBank will expand the programme to other state enterprises and private companies.
New loans to franchisees are targeted at Bt300 million this year and outstanding loans at Bt1.7 billion-Bt1.8 billion.
Rungsun Channarukul, senior executive vice president of TOT, said the company plans to offer an early-retirement programme to 2,000 employees this year and 1,500 employees next year.
The programme is part of measures to reduce staff expense and increase the company’s competitiveness in the telecom business.
Employees account for 40 per cent of total expenses. The company aims to slash that to 30 per cent by next year.
