Sometimes. Lenders usually prefer your contribution to come from your own savings, because it shows commitment and adds no new debt. But other sources can count, depending on the lender.
Sources lenders may accept
- Your savings, the simplest for lenders to accept.
- A gift from family: lenders usually want a letter confirming it's a gift that doesn't need to be repaid.
- A Start Up Loan: it can form part of your contribution alongside other finance. See Can I combine a Start Up Loan with other franchise finance?.
- Releasing equity from your home, or selling other assets. Take independent advice first.
What makes lenders cautious
- Borrowed money adds repayments. Lenders check you can afford them all.
- Undisclosed loans: always tell lenders where your contribution comes from. See What documents do I need for franchise finance?.
Don't stretch too far
Borrowing your whole contribution can leave a new franchise with heavy repayments and little room if trading takes longer to build. Keep enough for working capital and your own living costs. See How much of my own money do I need for a franchise? and How much working capital does a franchise need?.
For more on where contributions can come from, see Where can my deposit for buying a business come from?
Last reviewed: 8 October 2026