Your Crash Course In Franchise Financing Loans In Canada
OVERVIEW – Information on business finance and franchise financing in Canada. Financing solutions via franchising loans have some key requirements
Franchise Financing in Canada
is a key part of the total solution that the entrepreneur needs to put in place when considering the purchase of a new franchise or an existing unit. How do you get approved for that financing and who offers these loans? Let’s dig in.
Proper franchise financing, coupled with a solid franchise opportunity helps the entrepreneur assure financial and personal goals will be attained.
When we meet with business owners to discuss their Canadian franchise financing needs they often reveal they have contemplated purchasing their own business for quite some time but that financing was an obstacle. We firmly believe that financing should not be an obstacle to success.
The hard reality of franchise financing is actually very simple - that is that if you have a reasonable personal investment into the business ( we'll discuss' reasonable' later ) , and a decent work and credit history that are some great options for franchise financing in Canada .
Many new entrepreneurs are industry or work focused, and they don’t consider themselves ' financial types '! That simply emphasizes the point that you should be working with a trusted, credible, and experienced franchise financing advisor who can both guide you through the best solution, and in fact get you the capital that you need . It should not be any mystery that a combination of a strong proposal and application geared towards the type of financing you need almost guarantees total success.
If you don’t have a business plan or financial projection for your business you must realize you absolutely need that document. 9 out of 10 of our customers don’t have that plan, or recognize the importance of it. In that case we work with the customer, and prepare the plan based on input from you on your projected revenues, profits, expenses, etc. In our experience a winning plan is geared towards financing and not marketing and advertising.
We do get a little concerned when many new budding entrepreneurs come to us with no industry experience in the business they wish to purchase or enter into. That generally speaking is viewed as a negative, it does not mean you wont are financed, it simply means it’s a negative point that has to be taken into consideration.
Our experience in franchise financing with Canadian entrepreneurs is that a careful well thought our business plan, cash flow forecast, business summary give you a 95% chance of financing success.
In Canada our firm uses a three pronged strategy to finance franchises - we utilize the CSBF program , working capital term loans, lease financing, and oh yes, the 4th piece of the puzzle - your own investment .
We had referenced previously that your personal investment must be reasonable, there is no absolute number that can be tabled here - simply that an owner equity investment of 10 to 30, perhaps more per cent investment usually carries the approval. We can’t over emphasize that each franchise financing differs with client needs re amount, structure, types of assets being financed, etc.
So, our final bottom line - Be prepared, consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success . Have credible info and demonstrate you know your business. Soon you will be on the way to franchising success!
Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 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 & Contact Details :
http://www.7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
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 finance executive 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.
Stan Prokop
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