ABOUT ELCANO CAPITAL
Elcano Capital is a specialist boutique funds management buisness working only in creating and managing investment pools for franchise funding.
The $65b franchise sector consistently lists 'access to finance' as the second largest impediment to industry growth. Only 5% of the 1160 franchise systems in Australia have a genuine bank financing arrangement .
Elcano Capital, and the Franchise Marketplace, have been established to provide an opportunity for wholesale and sophisticated investors to participate in providing an alternate source of funding to selected businesses of the franchise sector. If you are a franchisor and would like to make an application for pre-approval status do so here.
We have purpose developed the Hybrid Capital Model so as to optimise the Risk Vs Return ratio in franchise funding.
The optimal franchise funding solution
The optimal funding solution is one that takes into account the needs and desires of all stakeholders to the transaction; the investor, the Franchisee Operator (as borrower), and uniquely the Franchisor.
Elcano Capital's Hybrid Capital Model works by utilising those aspects of debt and equity funding that optimises risk management while also achieving the most benefits for the Franchisee and Franchisor. It does this with a hybrid equity investment with debt structure, the Elcano developed Hybrid Capital Model.
While there are many separate stakeholder benefits all three stakeholders, franchisors, franchisees and investors will benefit from:
Single consistent Manager and staff: because Elcano's business model is to become a leader in alternative forms of SME funding solutions our model calls for consistency in our business. This means all stakeholders will be dealing with the same management team and management policies and not a bank like revolving door of managers and policies looking for the next promotion or means to extract an extra dollar from its customers;
Mutual growth: the success of the Elcano Franchise Fund 1, through selection of high calibre franchise systems, who in turn select excellent calibre franchisees for us to investment into, will result in happy investors who want to give more franchise funding, allowing Elcano's Franchise Fund 2 (etc) to be larger, our support services to be even better, thus supporting our pre-approved franchisors in their expansion plans and those of its franchisees;
Truthfulness, trust, and respect in the relationship: We believe many problems in corporate relationships and the break down in truthfulness, trust and respect stem from the distance between the management setting policies, or staff dealing with customers and the ownership of the business. Because Elcano is a SME franchisors, franchisees and investors will all be dealing direct with the business owners and executive management (all shareholders), who have a vested interest in maintaining mutual truthfulness, trust and respect in our client relationships.