WELCOME !

Thanks for dropping in for some hopefully great business info and on occasion some hopefully not too sarcastic comments on the state of Business Financing in Canada and what we are doing about it !

In 2004 I founded 7 PARK AVENUE FINANCIAL. At that time I had spent all my working life, at that time - Over 30 years in Commercial credit and lending and Canadian business financing. I believe the commercial lending landscape has drastically changed in Canada. I believe a void exists for business owners and finance managers for companies, large and small who want service, creativity, and alternatives.

Every day we strive to consistently deliver business financing that you feel meets the needs of your business. If you believe as we do that financing solutions and alternatives exist for your firm we want to talk to you. Our purpose is simple: we want to deliver the best business finance solutions for your company.



Showing posts with label franchising in canada. Show all posts
Showing posts with label franchising in canada. Show all posts

Friday, April 13, 2012

Don’t Make These Blunders When Financing A Canadian Franchise . Franchising In Canada … Done Right!





Are You Doing The Right Things When It Comes To Franchise Financing In Canada?


Information on franchising in Canada. Financing a Canadian franchise requires not making certain costly mistakes




A blunder. We're told it's about ' acting blindly ‘... ‘without guidance'. Can you actually afford to make a blunder when it comes to financing a Canadian Franchise? Talk about a costly mistake.

Let’s examine some ways in which you can avoid making those serious mistakes when looking at franchising in Canada and the financing needed to complete that purchase. And by the way that includes buying a resale franchise, or of course a new ' turnkey ' operation.

It goes without saying that you need to do your homework in order to ensure that Murphy's Law doesnt kick in... ‘What can go wrong ... will '. We're also often asked if there is a difference in working with a Canadian franchisor as opposed to a U.S. founded organization. We certainly don't think so... and the reality is you may well be dealing with a Canadian master franchisee anyway. That's of course a Canadian or Canadian organization who has secured the U.S. rights for Canada.

Identifying the right amount of capital required for your business franchise is critical. That of course involves the initial franchise fee, as well as the amount then required to facilitate the entire purchase. That might include equipment, leaseholds, inventory, etc.

It's at this time that many potential Canadian franchisees make their first ' blunder ‘. They forget to consider longer term working capital. That’s the funds required to run their business on a daily basis, re operating costs. Remember that your business can't grow without a proper base of working capital.

And coming back to our debt and equity scenario, spend some time understanding how the right mix of personal investment and debt plays out relative to leverage, risk, depletion of personal resources, etc.

There is a danger in making a sizable non refundable deposit if in fact you are ultimately unable to complete financing for your Canadian franchise. And talk about a sinking feeling if you complete a transaction and ultimately find you are not suited to the nature of the business with respect to the personal satisfaction that comes from creating and growing your own business.

There is probably no better ' homework ' when it comes to a Canadian franchise opportunity than talking to other franchisees within the system you are considering - they might also provide valuable insights into how they financed their franchise and what obstacles you might need to overcome .

We're not so sure you can call it a blunder, but it's certainly an over expectation if you think your franchisor will provide or significantly help you with the financing of your purchase. In fact you might be surprised that it’s the federal government, via the CSBF program that in fact finances thousands of franchises in Canada. Avoiding blunders in making that program successful for yourself is a whole other subject.

Avoid those blunders we're talking about when assessing your options in franchising in Canada when it comes to selection and finance of your business.

Consider also speaking to a good franchise lawyer, accountant or Canadian business financing advisor who can assist you in eliminating costly mistakes and enhancing chances for success.








Stan Prokop - founder of 7 Park Avenue Financial –

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/franchising_in_canada_financing_canadian_franchise.html

Friday, May 6, 2011

How To Qualify For Franchise Financing In Canada – A Franchising Finance Business Loan That Makes Sense!




















Buying A Franchise?


What do I need to do to get to the goal line? That's a favourite client question when it comes to franchise financing in Canada. We're talking about a franchising business loan to finance your new business (or one that exists already which you're buying).

Franchise Finance


Information. Solid info that you want on the qualifications and process involved in getting approved for your franchise investment. Let's dig in.




Franchise Loans Canada


To say that franchise finance is a ' specialty' area of Canadian business financing is an understatement. There is a fundamental misunderstanding of how this type of finance works, the processes around it, and the risks that you can avoid by doing things properly... with some expert advice along the way.

Franchising In Canada


Is there a systematic way, or method that Canadian franchisees can use to get the financing they need? We think there is. Essentially it is really two very simple concepts, planning, and knowing the process. Simple as that.

Many new Canadian franchisee ' wannabees' view financing as an obstacle. We can forgive those clients sometimes because in the last few years any type of business financing has been a challenge, whether you're General Motors or purchasing a new franchise in the restaurant industry!

Many franchisees (mistakenly so) think the franchisor you are working with is either going to provide you with the financing you need or in some cases at least steer you in the right direction. They might do a bit of the latter, but let's be honest here; the franchisor's job is selling franchises, not financing them.

 Even various banks and other franchise lenders probably would like to see franchisors being more involved in the franchising finance business, but we simply don’t think that is going to happen.
Education. And guess what, we are not talking about educating you, we're talking on your need to be able to educate your franchise lender about why you are the perfect franchise financing in Canada candidate.

Financing A Franchise In Canada


And who are the franchise lenders in Canada? That's probably the main thing you wanted to know, isn’t it? There are 4 key franchise lenders in Canada. They are the Canadian chartered banks under a special program called the BIL/CSBF program, one or two very specialized franchise finance lenders ( they only do very large transactions ) , and thirdly some independent finance firms that offer equipment financing tailored specifically for the franchise industry.

But didn’t we say there were 4 lenders? We did. And we're pretty sure you know that 4th lender already. It’s yourself because your own equity portion or down payment into your business is viewed of course as a debt or a loan.

So what's the clear process in qualifying for franchise financing in Canada. Is there a clear road map you can follow? We categorically think there is. And here it is.

Identify the total franchise funding you need. Determine what amount of owner equity you are prepared to put into the transaction. Anywhere from 10 - 40% is typically required. Determine which of the 3 other methods of financing will allow you to cobble together a total solution to finance your new business.

Next step - prepare a package that includes a business plan, cash flow, info on yourself and the franchisor, with a focus on success and repayment of your debt. Along the way don't forget that you need reasonable personal credit history, and boy does some specific industry experience or general business knowledge help in confirming your future ability to be successful for a franchise finance business loan.

Focus on the best financing that matches your needs; we strongly recommend the BIL program which has great rates, terms, structures, and limited personal guarantees.

Going it alone. It’s possible. A better idea? Speak to a trusted, credible and experienced Canada business financing advisor on information and help on franchise financing in Canada. Next step = ' You're approved '!





7 Park Avenue Financial :

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769


Email = sprokop@7parkavenuefinancial.com

http://www.7parkavenuefinancial.com

Click Here For 7 PARK AVENUE FINANCIAL website !




7 Park Avenue Financial provides value-added financing consultation for small and medium-sized businesses in the areas of cash flow, working capital, and debt financing.



Business financing for Canadian firms, specializing in working capital, cash flow, asset based financing, Equipment Leasing, franchise finance and Cdn. Tax Credit Finance. Founded 2004 - Completed in excess of 100 Million $ of financing for Canadian corporations.


' Canadian Business Financing With The Intelligent Use Of Experience '


ABOUT THE AUTHOR

Stan has had a successful career with some of the world’s largest and most successful corporations. He is an experienced

business financing consultant

.

Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.


Stan has over 40 years of business and financing experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in-depth, hands-on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.










7 Park Avenue Financial/Copyright/2020











How To Qualify For Franchise Financing In Canada