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 Franchise Financing Loans. Show all posts
Showing posts with label Franchise Financing Loans. Show all posts

Friday, February 22, 2019

The Secret of Franchise Financing Loans













Prepared For Your Franchise Finance Strategy? You Are Now!



Information on franchise loans in Canada, Franchise financing can be a challenge for the entrepreneur . Here's strategies for franchising loans that work




It's appealing, we know that. It’s the idea of owning your own business that is a proven brand and money maker.
Franchise financing loans can help you address your entrepreneurial vision of owning a franchise in Canada. The ability to own your own business and generate profits and wealth is of course appealing to all.

Picking your franchise in some ways is half the battle, as you probably have been focused on purchasing a new or existing franchise that matches your skills, interest, and experience. The other half of the battle and some say the harder one (we would agree) is arranging franchise financing loans that make sense for your business and your own personal situation.

As we point out to clients, whether entrepreneurs are starting a major manufacturing company that might employ hundreds, or a pizza shop with a staff of three two considerations come to mind, always - they are debt and equity. We're of course referring to how much you will put into the business, and how much business credit for a franchise loan can be accessed.

So are there some great secrets and tips we can share with yourself as a prospective entrepreneur - there sure are.

First tip/secret # 1 is simply to investigate carefully the financial requirements that your franchisor requires. These must be addressed in a solid and dedicated manner. If you don’t understand the requirements how can you address them? So ensure you understand the amount of financing the franchisor recommends. Is that all? Definitely not, that’s where our previous concept of planning was mentioned. Make sure you consider two other aspects of the business financing; they are working capital for daily operations, and some sort of plan for long term growth or expansion.

It's probably not written in stone somewhere, but we have always felt that clients aligning themselves with a major brand that has a larger number of multiple units have a strong chance of financing success. Of course that isn’t always the case, as some new concepts in a number of industries continue to be introduced all the time, but it sure helps if the lender is enamored by the franchisors brand and success.

Another great tip and secret is simply that as opposed to spending all the time on the business itself when you are discussing financing, rather also focus on your own personal financial situation and experience. This is absolutely one of the most important criteria that banks pay attention to - namely how have you run your personal affairs, and at the same time do you have the type of business of management experience.

Some franchisees think because they don’t have very direct experience it might hinder their financing - the reality is by properly positioning your skills in a general sense, i.e. previous sales experience, customer service, etc you can capitalize on general business skills required to run any business .

You may not like to hear the news, but the reality is that you do in these times need a sizeable personal investment into the business, aka your owner equity. Those typical ranges between 30-50% depending on the size and nature of your franchise. In some cases you might be in fact buying an existing franchise from another franchisee who wishes for some reason to 'move on.

Let’s share probably our greatest secret in financing your franchise
- the government of Canada. Many clients are surprised to hear that a government program known as the CSBF / BIL program is the largest financier of franchises in Canada. Its underwritten, structured, and supported by the government and offers great rates, terms and structures for amounts up to 350,000.00 - that amount was increased from 250k in previous years.

A final secret - experts are preferred - Speak to a trusted, credible and experienced Canadian business financing advisor on how you can efficiently and successful gain knowledge on franchise financing loans for your new business.






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


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.
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.










Sunday, February 3, 2019

Franchise Financing Loans In Canada













Franchising Loan - Are You Approved? Here's How


Information on
franchising loan
strategies to ensure approval for the entrepreneur



Franchise financing approval in Canada is a key aspect of the entrepreneurs challenge to purchase and build a business. Canadian business people purchase franchises because they wish to profit and be successful on an already proven business model. We of course assume they have picked the right franchise!


What mistakes can be made in franchise financing as it relates to the purchase of a new or existing franchise? Naturally solid planning and careful preparation of a business plan increases the chance of success.


Whether a business is a franchise business or not the under pinnings of a successful finance strategy are important to long term success. Business owners, bankers, other lenders and financial analysts always look at the relationship between debt and equity – in simply language that means how much you yourself are putting into the business and how much you are borrowing. If you borrow too much you are considered ‘over leveraged. Therefore in the course of purchasing your franchise you should be prepared to make a personal investment in the business also – that’s a given – it cannot all be OPM, which is and an acronym for ‘Other Peoples Money ‘.


So of course when we meet with clients they always ask ‘how much do I have to put into the business? The answer is as follows – many franchisors will actually insist on a certain amount of money being put down , because based on their actual experience with their own locations and other franchisees over time there develops formulas as to what is an optimal investment by yourself .


Also keep in mind that if you, as an example, are purchasing, say, a large unit of a restaurant chain that transaction might be in the 1 Million dollars range. Let’s say you put 25% down of 250k. Another franchisee might be buying a service oriented business that does not have and furthermore does not require fixed assets such as leaseholds, equipment, etc. If that business cost 100k to purchase a 25% down payment is of course only 25k, much less than the 250k other franchisee had to put down in absolute dollars. So our point is simply that if the purchase price of your franchise is asset intensive, and has a higher dollar value you must naturally assume that a large absolute dollar amount of financing is required. That probably is clearly the appeal of many service based franchises that do not require assets.


So how are asset based franchises financing in Canada. There is in our opinion a large amount of dis information on franchise financing in Canada – therefore new and prospective franchises are encourage to speak to a trusted and credible franchise financing expert . That is simply because you will know your options and strategy much better. It certainly doesn’t hurt, if you can, to speak to other franchisees in the franchise system that you are looking at purchasing.


In some respects there is a benefit to purchasing an existing franchise from a current franchisee in the system you are looking at. Our observation is that those units come with a higher price , for the simple reason they are proven already, they have sales, profits, and cash flows that you can analyze , with your franchise financing expert, to determine the overall viability of the business .


We have worked with a number of prospective franchisees who actually are comfortable in buying a franchise that is not doing so well because they strong feel they can turn it around. So there are in effect buying a business that is proven, but temporarily distressed in some manner, usually relating to issues such as poor sales revenues, etc.


Franchises in Canada are financed predominantly by one major government program that is in existence – we have found that by utilizing this program, and complimenting that financing with a working capital term loan and lease and equipment financing (if applicable) helps to ensure overall franchise financing success.


In summary, ultimately you as a business owner have to be comfortable with what you are purchasing – but you should also take comfort in knowing that franchise financing is available in Canada, and simply needs to be tailored to the type of business you are buying, its size and asset requirements, as well as the utilization of proven and available financing methods such as the government CSBF program we referred to.


Investigate your opportunity, plan financing carefully, execute on that financing and your chances of success increase immensely






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


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.
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.












Thursday, August 28, 2014

Franchise Financing Loans In Canada : Achieving Franchise Finance Success Depends On This








Looking To Be A High Achiever In Franchise Loan Success?


OVERVIEW – Information on acquiring franchise financing loans in Canada . Franchising finance is successful when the franchisee has mastered these critical issues








Franchise finance
success in Canada - What business person /entrepreneur wouldn't want to be a ' high achiever ' in the one area that is critical to success - franchising financing. Let's dig in.

The good news in the franchise industry is that the few rougher years after the 2008 recession appear be quite well over - that has made it easier for potential franchisees of new and existing franchises to acquire the capital they need - if.. And it’s a big if... they know how to go about it.

The most common ' type ' of loan for a franchise is a ' term loan ‘. It's a fixed payment loan that is amortized over a period of usually 3-7 years. These loans are acquire and achieved through only a small handful of sources - a specialty franchise finance lender , ' the bank ' ( more about that later ) and a combination of commercial financing options that , when cobbled together put you on the path to loan success .

All these solutions might include one, or a combination of equipment and leasehold financing, working capital, credit lines, etc,

How you navigate the landscape of franchise lending (landscape in some cases might mean ' minefield ‘!)
will depend on your ultimate success in securing capital.

One key component of the franchise acquisition is the owner equity, aka ' down payment ' component. While there is no right amount that broadly qualifies all franchisees a typical range is between 25-50%.
KEY POINT - In some cases you only need to demonstrate you has access to capital, not necessarily provide it.

Your down payment, loan amount and ongoing finance needs are best set out in the financial portion of your business plan. This document should lay out in a clear manner the cost of the business, your loan amount, your on going incoming cash flows, your loan payments, and , most critical - the timing of your cash inflows . For example while many franchises in the hospitality business are ' cash businesses ‘ other franchises might be selling on credit terms - whereby they will only collect their invoice sales 30-60 days later .

In Canada there is a major government program that finances a huge amount of franchises. The program is called the CSBF program and finances loans up to 350k on very reasonable rates, terms and structures. The Canadian government guarantees a very large part of the loan to the participating bank.

If you want to be a ' high achiever ' in franchising finance success consider seeking out and aligning yourself with a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who will ensure the correct options relative to your situation will be explored.. And achieved... making you that ' high achiever ' in the explosive franchise industry that is such a big part of the Canadian economy.






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 :



7 PARK AVENUE FINANCIAL = CANADIAN FRANCHISE FINANCE EXPERTISE





Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
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 '





























Friday, November 5, 2010

The Secret of Franchise Financing Loans

It's appealing, we know that. It’s the idea of owning your own business that is a proven brand and money maker. Franchise financing loans can help you address your entrepreneurial vision of owning a franchise in Canada. The ability to own your own business and generate profits and wealth is of course appealing to all.

Picking your franchise in some ways is half the battle, as you probably have been focused on purchasing a new or existing franchise that matches your skills, interest, and experience. The other half of the battle and some say the harder one (we would agree) is arranging franchise financing loans that make sense for your business and your own personal situation.

As we point out to clients, whether entrepreneurs are starting a major manufacturing company that might employ hundreds, or a pizza shop with a staff of three two considerations come to mind, always - they are debt and equity. We're of course referring to how much you will put into the business, and how much business credit for a franchise loan can be accessed.

So are there some great secrets and tips we can share with yourself as a prospective entrepreneur - there sure are.

First tip/secret # 1 is simply to investigate carefully the financial requirements that your franchisor requires. These must be addressed in a solid and dedicated manner. If you don’t understand the requirements how can you address them? So ensure you understand the amount of financing the franchisor recommends. Is that all? Definitely not, that’s where our previous concept of planning was mentioned. Make sure you consider two other aspects of the business financing; they are working capital for daily operations, and some sort of plan for long term growth or expansion.

It's probably not written in stone somewhere, but we have always felt that clients aligning themselves with a major brand that has a larger number of multiple units have a strong chance of financing success. Of course that isn’t always the case, as some new concepts in a number of industries continue to be introduced all the time, but it sure helps if the lender is enamored by the franchisors brand and success.

Another great tip and secret is simply that as opposed to spending all the time on the business itself when you are discussing financing, rather also focus on your own personal financial situation and experience. This is absolutely one of the most important criteria that banks pay attention to - namely how have you run your personal affairs, and at the same time do you have the type of business of management experience.

Some franchisees think because they don’t have very direct experience it might hinder their financing - the reality is by properly positioning your skills in a general sense, i.e. previous sales experience, customer service, etc you can capitalize on general business skills required to run any business .

You may not like to hear the news, but the reality is that you do in these times need a sizeable personal investment into the business, aka your owner equity. Those typical ranges between 30-50% depending on the size and nature of your franchise. In some cases you might be in fact buying an existing franchise from another franchisee who wishes for some reason to 'move on.

Let’s share probably our greatest secret in financing your franchise - the government of Canada. Many clients are surprised to hear that a government program known as the CSBF / BIL program is the largest financier of franchises in Canada. Its underwritten, structured, and supported by the government and offers great rates, terms and structures for amounts up to 350,000.00 - that amount was increased from 250k in previous years.

A final secret - experts are preferred - Speak to a trusted, credible and experienced Canadian business financing advisor on how you can efficiently and successful gain knowledge on franchise financing loans for your new business.

--

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 6 years - has completed in excess of 45 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :
http://www.7parkavenuefinancial.com/franchise_financing_loans.html