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.



Friday, April 6, 2012

Lost ! Your Canadian Franchise Opportunities. Issues You Can’t Not Consider Re: Your Franchising Finance Loan




Considered These Other Issues In Canadian Franchise Financing?


Information on important aspects of a finance loan for Canadian franchise opportunities




Feeling like you may have missed out, or perhaps simply overwhelmed with the ability to a finance Canadian franchise opportunities. There are a lot of issues to consider when contemplating a franchising loan, some of which you may not have even considered or be aware of. Oh, and by the way, some of these pertain to those of you who are already franchisees and have even more unique issues to address.

Let's examine some key concepts in franchise financing. Although things have certainly gotten a lot better in the last year or so we are clearly not 100% out of the rough when it comes to the economy and lending perceptions for new and small businesses. Unless you're a master franchisee with the rights to a number of franchises then clearly you are essentially a ' Small Business '. So not withstanding the great strengths of a proven franchise business model you still face the same issues and challenges of an SME owner in Canada.

Although many current franchisees want to make some changes in their business, as well having access to the finance required it’s still difficult to achieve that flexibility.

The majority of franchises in Canada are in the ' B TO C ' (business to consumer) model. That is of course heavily dependent on the economy s a whole, and access to the financing you need. If you are a current franchisee you perhaps are in a position to simply tighten up on expenses to meet your overall working capital needs - especially if your business is suffering from a less than adequate location. In some cities in Canada demographics change, and that can drastically affect your revenues over time. Location is still critical to franchise success if you are in a business to consumer model that we spoke of.

Sometimes the solution to franchise success if you are a current franchisee is to ' upgrade ‘and revitalize your location. But what type of financing can in fact help you finance things such as leasehold improvements? The good news is that the same financing program that probably helped you acquire the business is also available for ongoing financing needs. We’re of course referring to the government business loan, aka the ' SBL '. Financing up to 350K can be accessed for things such as leaseholds, new equipment, architectural drawings, etc.

We would caution franchisees that they need to be able to sufficiently prove that any refinancing of the business must make sense in the terms of cash flow repayment. That can be accomplished by a simple cash flow plan with a focus to additional revenues achieved through your revitalization. Don't let lack of capital make you miss Canadian franchise opportunities for new and existing franchises. Ensure that you demonstrate though that you can handle the additional debt service.

There are a lot of issues to consider in financing a new or existing franchise .In some cases you might even be considering the purchase of an existing busines from another franchisee.

Speak to a trusted, credible and experienced Canadian business financing advisor for help with the issues surrounding a successful end to your franchising finance loan.





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/canadian_franchise_opportunities_finance_loan.html

1 comment:

  1. Franchising a company has grown to become commonly popular in the last few years in Canada. Mainly because of its flourishing business idea. Anyway, I am quite impressed to read this article.

    franchise opportunities Canada

    ReplyDelete

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