More recent data from the Banking Economics and Expectations survey by the Brazilian Federation of Banks (Febraban) indicate that credit market growth in 2023 should remain above 8%. For those interested in undertaking this segment, franchising can be a gateway. André Oliveira, CEO of CredFácil, a network that operates in the field of payroll loans and financing, listed four reasons to take advantage of the sector’s rise to invest in a financial solutions franchise. Check below:
1) High demand
For 2023, the projected growth of the total credit portfolio for individuals is 14.1%, according to Febraban. In parallel, data released by the ABF (Brazilian Franchising Association), in February this year, show that the ‘Services and Other Businesses’ segment, of which finance franchises are part, also grew by 8.2%, in comparison between the years 2021 and 2022.
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2) Know-how and reference in the market
Franchising is the gateway for many beginner entrepreneurs, as the risks are much lower than starting your own business from scratch. “By being part of a group of franchises with a contract evaluated by renowned associations, such as the Brazilian Franchising Association (ABF), the network demonstrates the know-how of a consolidated credit company recognized among the main banks in the country. Banking correspondents, who act as intermediaries for transactions and credit operations contracted by financial institutions, reduce bureaucratic processes”, comments Oliveira.
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3) Wide range of services
Banking correspondents can also offer various services by acting as a mini bank, intermediating transactions, such as: payment orders, investment and redemption in an investment fund, collection of registration information and credit analysis, payments and receipts of accounts from any nature, collection services, requests for business and personal loans and financing, making payments, receipts and electronic transfers to operate deposit accounts held by customers maintained by the contracting institution, among others.
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4) Business models for different types of entrepreneurs
Another advantage when investing in a franchise is being able to choose the model that fits the pocket and profile of each entrepreneur. For example, at CredFácil, in the Home-based model, the investment starts at R$19,997 and the franchisee works from home. In the Store model, the initial investment is BRL 100,000, requiring a space of at least 35m², in which the company provides the franchisee with full support in standardizing the store, including the architectural project. There is a third model, the Black, which follows the same standards as the Loja, but the minimum space is 80m² and requires an investment of R$150,000. Finally, the Master, a premium format with xx m² and an investment of R$500,000.
CredFácil was created in 2004 by entrepreneur André Oliveira, the group operates in the field of loans and payroll financing with the mission of offering financial solutions to all people who need credit.