What It Takes For Successful Franchise Funding
OVERVIEW – Information on franchise business loans in Canada . Challenges related to a franchising loan can be overcome with the proper mix of information and expertise
Franchising business loans in Canada often come with a timeline experience that most franchisees have a huge problem in overcoming. How can that timeline for ultimate franchising loan success be shortened? Let's dig in.
Whether the potential franchisee is either purchasing a turnkey operation, or looking for a ' refranchising ' opportunity (i.e. buying an existing business) it’s all about getting approved. In certain cases the type of business opportunity that you purchase will affect financing approval - that might be either for the size of the transaction (too small / too large) or in some cases the type of business you are looking at.
Top experts tell us that currently businesses in the health care and hospitality sectors are ' hot ' - but the multitude of franchise opportunities out there continues to be enormous. The industry itself powers close to half the economy according to some pundits.
The shortfall that a franchisee faces when it comes to a total financing package often comes from owner equity. This certainly makes it even more difficult for entrepreneurs looking to purchase multi unit operations.
Rarely does the franchisor in Canada offer financing options - they sell franchises, they don't finance them - with their franchise fees and royalties helping to financing the expansion of their network.
In certain cases larger well known franchises with broad geographic exposure in Canada have aligned themselves with Canadian banks to offer a finance program. However this by no means guarantees approval and traditional lending criteria still applies. If franchisors were a bit more serious about assisting in the financing process some solutions might be lower franchise fees, royalty flexibility, subsidized financing, etc. Safe to say that probably won't happen!
Three basis finance solutions are available to the franchisee - they include:
Specialty franchise financing
The Govt CSBF loan
Supplemental financing by a variety of commercial financing firms offering equipment financing, merchant cash advances, working capital term loans, etc.
One or a combination of any of the above solutions will start your journey to financing success with the shortest timeline possible. At the end of the day it’s about expertise and information available to the borrower that will ensure faster credit approval.
Information that helps shorten your approval timeline includes a proper loan package that consists of owner personal financial info, a business plan or strong exec. Summary, a cash flow and loan repayment forecast, and pertinent information relating to the franchise you are purchasing regarding franchisor history/prospects.
If you are focused on fast and successful franchising loan approval seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can shorten timelines and ensure you are aware of all options.
Stan Prokop - 7 Park Avenue Financial :
http://www.7parkavenuefinancial.com
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 90 Million $ of financing for Canadian corporations . Info /Contact :
http://www.7parkavenuefinancial.com/franchising-loan-franchise-business-loans.html
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CONTACT:
7 Park Avenue Financial
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
' Canadian Business Financing with the intelligent use of experience '
Stan Prokop
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