Raising Capital for a Franchise in 2026

🕒 Estimated reading time: 4 min.

Franchise Direct has previously shared our handy tool guide on the best way to ‘Finance a Franchise’, but we wanted to share some further tips for the best ways for entrepreneurs in 2026 to raise capital for franchise investments.

In the last decade, the Irish financial landscape has changed significantly. Aspiring business owners should also be aware of the modern lending alternatives also available.

1. "Alternative" Lenders (Non-Bank Finance)

In 2016, AIB and Bank of Ireland were the primary options for business owners looking to borrow. In 2026 however, the market is much more diversified for lending.

• Strategic Banking Corporation of Ireland (SBCI) (established in 2014): Entrepreneurs can look for SBCI-backedloans. These are government-support loans which offer lower interest rates and flexible terms specifically for SMEs and for those looking for business expansion and growth, along with enterprises promoting sustainability.
• Microfinance Ireland (MFI): Also supported by the Irish government, this option can be a popular choice for those looking to set up small franchises that requirement a low-cost entry free as MFIcan offer loans for up to €25k.
• Peer-to-Peer (P2P) Lending: Peer-to-Peer lending offers alternative finance options for both SMES and individuals. Two in particular, Flenderand Linked Finance, are popular in the Irish SME market. Compared to traditional banks, their approval process is much faster. However, there these lenders have higher interest rates which makes them slightly higher risks than traditional lenders.

2. Digital Assets & "Fintech" Readiness

In 2016, a "good credit history" meant your bank statement and ICB (Irish Credit Bureau) report. In 2026, you may have

• CCR (Central Credit Register): You must now be aware of your CCR report, which is more comprehensive than the old systems.
• Open Banking: Lenders in 2026 will likely request access to your real-time transaction data via Open Banking APIs rather than just printed PDFs of statements. Ensuring your digital "financial footprint" is clean is now a requirement.

3. Sustainability and "Green" Loans

A major 2026 update is the availability of ESG (Environmental, Social, and Governance) financing.

If your franchise is built around sustainability or ‘green-focused’ (e.g., EV delivery vans, zero-waste packaging, energy-efficient equipment), you may be eligible for ‘Green Loans’ that could offer preferential rates. In recent years, several franchisors have completely overhauled their business models to become more sustainable as this makes it easier for them to secure additional funding and capital.

4. Government Grants and Local Enterprise Offices

Without a doubt, an entrepreneur should first consider visiting their Local Enterprise Office (LEO). Dotted around the country, these offices have been set up to offer to support to local/small businesses in their communities.

Services offered:

• Feasibility Grants: You may be eligible for funding to research the franchise's viability in your specific Irish territory.
• Trading Online Voucher: If your franchise involves a significant e-commerce element, the government provides specific grants to digitise the business.

5. Updated Self-Contribution

With regards to personal contributions, in the past this has been as high as 40%. However, there are some alternative options for new franchisees:

• Lower Entry Points: Some proven, service-based franchises now have arrangements with lenders where the personal contribution can be as low as 20-30%, provided the franchisor is on the bank’s "Accredited List."
• Asset Refinancing: Using equity in existing assets (like home equity or equipment) has become an increasingly common way to meet that "cash" requirement without having it sitting in a savings account.

Your Finance Checklist Before Meeting a Lender