Don’t Gamble On Franchise Funding Success . Finance Your Franchising Opportunity Properly!

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Franchise Funding in Canada - Financing Your Franchise Purchase

Franchise funding in Canada . At times does it seem like you have to take a real gamble on the franchising opportunity just to complete a transaction properly? And then finance it? Is there a better way? We think there is, and here's why, and how!

We're the first to admit making that franchise purchase decision is a huge leap of faith for many existing and would be entrepreneurs. Not only is it appropriate and important to align yourself with the proper franchisor, the challenge then becomes assembling what we could call a small ' team ' of advisors and mentors. So who is on that team - typically it’s a key contact at your franchisor, your accountant or franchise lawyer, and a financing advisor of some type - it might be your banker, it might not be.

So if you have a team in place is there still a gamble and risk here? To some degree yes, as the question still hangs over your opportunity, namely ‘How does franchise financing work and can I convince a lender of some sorts to approve my transaction?”

If there is any good news in the cloud of doubt we seem to be casting (we’re not trying to be negative!) here it’s simply that a franchising opportunity is viewed as a positive business model in today’s Canadian lending landscape.

Getting the right terms and conditions and utilizing the best finance program for franchises is key. So what then makes franchise funding and getting your acquisition in place a ' gamble ' sometimes? One thing is the quality of your team - the advice and direction you get from your franchisor, your finance partner, your specialized franchising lawyer etc are worth a million dollars... or close to it!

When it comes to financing you absolutely must be working with a lender of financing advisor who is both positive, and yes, experienced! in franchise finance. The reality is that there are always naysayers in any crowd, so if you get the old line ' we like you and your idea but we just think it's too risky ' you are absolutely going to have to replace some of our aforementioned team mates!

Who are the preferred lenders in franchise funding in Canada. You might be surprised to know it’s the federal government! Under the auspices of the CSBF program thousands of franchises are financed in Canada every year. Is it an automatic approval? Hardly - but you can eliminate a lot of the gamble we have been talking about by simply focusing on a crisp presentation.

That includes a solid business plan , cash flow, ( Cash repays loans by the way !) and the ability to position yourself as having an appropriate level of business or industry experience within the sector you are entering into with your franchisor .

While we identified your franchisor as part of your team we would quickly hasten to say that you’re really gambling on success if you are relying on the franchisor to help you with financing in a direct manner. 99.999% of the time they don't and won't.

That is why the CSBF program we mentioned is so popular. It’s a largely guaranteed government loan that still gives you tremendous financing flexibility. Other sources of financing include specialized franchise lenders and commercial finance and leasing firms who can assist in closing your transaction successfully.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in removing the ' gambling ' aspect of successful franchise funding in Canada.






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.



Stan Prokop

Financing Franchises . The Rules For Franchise Funding In Canada

Can You Imagine Franchise Funding Going Smoothly ?



OVERVIEW – .Information on franchise funding in Canada . Financing franchises is not easy, but gets easier when you know the rules and have he right access to help and expert information




Financing franchises in Canada. Boy would it help to know some of ' the rules ' when it comes to franchise funding going smoothly. We know some of those rules, so let's dig n.

To say that the actual successful acquisition and financing approval for a franchise is a big step for the entrepreneur is a bit of an understatement. Coupled with all the selection, administrative and legal issues that surround acquiring a franchise comes the finance challenge. In some ways entrepreneurs view it as the biggest challenge.


The amount of funds you yourself have to invest often plays a key role in your final franchise decision. While a good portion of your total purchase will in fact be debt of some sort - (leases, loans, working capital, etc) there is the equity component you have to consider. You may not be aware, but many franchisors in fact make a franchisee decision related directly to the amount you have to invest, and they are pretty clear about that on their website and introductions with you.

So where do clients we talk to raise equity for their ' down payment ' portion of the transaction. Some collapse savings, some approach friends and family. While using savings as a key component of your equity in the deal it is certainly not preferred to collapse registered type investments, RRSP's etc in order to avoid the tax bite.

When approaching a bank or a specialized finance firm they will absolutely be focusing on that down payment. And it’s not a question of just showing up with the down payment ability - the bank or lender will typically want to know how it was achieved.

We have referenced banks as a source of financing for financing franchises - that needs to be clarified. Unless you are a very high net worth and valued client of the bank it is somewhat, in fact quite doubtful that the bank will finance the purchase directly. While Canadian chartered banks do realize the benefits a proven business models and market share and systems in place to succeed they rarely finance a franchise outright.

What they do though is to in many cases; utilize the Canadian BIL/CSBF loan program that is provided under the auspices of the government. It's a perfect match for franchise funding by the way, even though we suspect it was designed for that!

The true beauty of that loan also is the fact that no outside collateral is required, so you won’t be asked to collateralize your home, other personal assets etc. Clients are always asking us for a clear explanation of the loan criteria for a BIL Franchise loan. That basic criteria is as follows -

- Good personal credit history
- Ability to contribute 10% minimum permanent equity in the business
- You must have business experience and be able to demonstrate that in a business plan and cash flow forecast
- Your business must have a permanent address and lease that is at least as long as the loan term
- You should be able to demonstrate commitment and enthusiasm - just ' buying a job ' doesn't cut it!


In many ways you can expect that the bank and franchisor are looking at the same things - your business experience, your financial stability, etc. Remember though that the bank or specialized franchise lender isn't an equity partner, they also won’t be sharing in monthly royalties.

So ensure your business plan and cash flow reflects profits and repayment ability! Don't forget also to address the fact that you have working capital and potential long term financing needs, which need to be well thought out.

Can franchise funding go smoothly? It can with the right knowledge, info and resources. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who is an expert and has a track record and can assist you with your franchise financing needs via the right ' RULES'!





CANADIAN FRANCHISE FUNDING




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 10 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 :


7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

























Stan Prokop

Don’t Gamble On Franchise Funding Success . Finance Your Franchising Opportunity Properly!

Canadian franchise financing success , without the risk!


Information on franchise funding in Canada . Your ability finance your franchising opportunity properly is key to your success as a franchisee


Franchise funding in Canada. At times does it seem like you have to take a real gamble on the franchising opportunity just to complete a transaction properly? And then finance it? Is there a better way? We think there is, and here's why, and how!

We're the first to admit making that franchise purchase decision is a huge leap of faith for many existing and would be entrepreneurs. Not only is it appropriate and important to align yourself with the proper franchisor, the challenge then becomes assembling what we could call a small ' team ' of advisors and mentors. So who is on that team - typically it’s a key contact at your franchisor, your accountant or franchise lawyer, and a financing advisor of some type - it might be your banker, it might not be.

So if you have a team in place is there still a gamble and risk here? To some degree yes, as the question still hangs over your opportunity, namely ‘How does franchise financing work and can I convince a lender of some sorts to approve my transaction?”

If there is any good news in the cloud of doubt we seem to be casting (we’re not trying to be negative!) here it’s simply that a franchising opportunity is viewed as a positive business model in today’s Canadian lending landscape.

Getting the right terms and conditions and utilizing the best finance program for franchises is key. So what then makes franchise funding and getting your acquisition in place a ' gamble ' sometimes? One thing is the quality of your team - the advice and direction you get from your franchisor, your finance partner, your specialized franchising lawyer etc are worth a million dollars... or close to it!

When it comes to financing you absolutely must be working with a lender of financing advisor who is both positive, and yes, experienced! in franchise finance. The reality is that there are always naysayers in any crowd, so if you get the old line ' we like you and your idea but we just think it's too risky ' you are absolutely going to have to replace some of our aforementioned team mates!

Who are the preferred lenders in franchise funding in Canada. You might be surprised to know it’s the federal government! Under the auspices of the CSBF program thousands of franchises are financed in Canada every year. Is it an automatic approval? Hardly - but you can eliminate a lot of the gamble we have been talking about by simply focusing on a crisp presentation.

That includes a solid business plan , cash flow, ( Cash repays loans by the way !) and the ability to position yourself as having an appropriate level of business or industry experience within the sector you are entering into with your franchisor .

While we identified your franchisor as part of your team we would quickly hasten to say that you’re really gambling on success if you are relying on the franchisor to help you with financing in a direct manner. 99.999% of the time they don't and won't.

That is why the CSBF program we mentioned is so popular. It’s a largely guaranteed government loan that still gives you tremendous financing flexibility. Other sources of financing include specialized franchise lenders and commercial finance and leasing firms who can assist in closing your transaction successfully.

Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in removing the ' gambling ' aspect of successful franchise funding in Canada.





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/franchise_funding_finance_franchise_opportunity.html

Surviving The Franchise Business Loan Process - Doing it Right In Franchise Finance Funding in Canada

We wouldn’t say that it’s a life and death situation, but clearly surviving the entire franchise business loan process with a final result of successful franchise funding of your new business is clearly a victory on your part.

Let’s examine how you find franchise finance funding in Canada and the most efficient methods to complete the process when it comes to time, resources, and utilizing proper expertise.

Although there is somewhat of a negative spin on business funding and business financing in general the reality is that as a whole the franchise industry is viewed as a positive ' vertical market ' by the lenders that participate in this area . Many new entrepreneurs will be surprised to hear that one government financing vehicle is actually the most utilized by new franchisees.

We also sometimes forget to reference the fact that when it comes to a franchise funding that whole process can also involve your purchase of an existing franchise where the current owner is motivated to sell. Certain processes, procedures and recommendations on buying an existing franchise are somewhat different than your traditional new ' turn key ' approach to a brand new franchise.

So let’s get back to our ' survival ' theme. What elements of preparation are critical to that? Many franchisees we talk to complain or tell horror stories of the time it took them to finance their business. Our observation on that is simply that if you are not fully prepared up front to present a package to the right party, containing all the critical elements... well you know what comes next... there is just simply a tremendous amount of back and forth and potential frustration on your part . And don’t forget you also run the risk of alienating your lender and being perceived as ill prepared to own and run an entrepreneurial business.

So what you do need to have in that packaged that allows you to survive the entire financing process?
The key elements are a concise business plan as a good start! We also caution franchisees that the plan should focus on repayment of the loan and franchise funding itself - with less emphasis on all the marketing and ' pr ‘type material that is in many plans we see.

Key elements of that plan are your background and experience. If you are purchasing a business and looking for a franchise business loan in an industry in which you have no experience be aware that that will be come a discussion point with the lender. In reality any business person that has solid overall management experience and skills, coupled with some financial acumen should be in a position to ‘up sell ' their skills as a new franchisee and entrepreneur.

We speak of the ' lenders ' in franchise finance funding in Canada. If you don’t know who they are we can virtually guarantee you frustration and a potential decline of your proposal.

The largest franchise lender in Canada... are you ready for this... is the government of Canada by virtue of their support of a special program called the BIL/CSBF loan program . The majority of franchise business funding is done through this program. By the way it has great rates, terms and structures that are often perfect matched to your needs.

In summary, we can clearly say that a franchise business loan is not 'rocket science ' ; identify a suitable BIL/CSBF loan partner , prepare a clear package that’s focused on your and repayment of the financing, and consider seeking the services of an expert in Canadian business financing in the franchise area . You'll find you have survived the process and come out on the other end approved and ready to commence your role as a new Canadian business owner in the franchise industry.

-



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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

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

Franchise Funding and Financing Options for Franchisees In Canada

As a new potential franchisee in the Canadian franchise industry you want, and need! … some basic info around how franchise funding works in Canada. Those financing options may be critical to your overall success as a new entrepreneur in your chosen industry.

Ironically experts tell us that one of the main reasons that people don’t go into the franchise arena as independent business owners and entrepreneurs is because they feel they either did not have or could not raise the funding for the business.

Naturally in the current tough ( but getting better!) economic environment start up capital for any business is a challenge - so having access to the best information and resources around franchise funding is clearly a major key to success .

It kind of all starts with a business plan , we meet with many clients who have initially been refused for franchisee financing for the very simply reason they weren’t prepared and the reality is you don’t get a lot of chances in financing a new business when you are unprepared .

If you aren’t able to prepare a proper plan yourself you can speak to a trusted advisor in Canadian business franchise financing and one can easily be prepared for you - it’s all about working with an expert. The key part of any business plan is that you can present your financials properly - which simply means what sales you feel you can achieve, what your expenses will be, and what projected profits will be . A key element of all that is your ability to generate cash flow to repay your franchise funding loans - which makes perfect sense - from the lenders perspective of course!

Your plan has to be presented properly and you should be able to anticipate any questions the lender will have about your experience, how you will run your business, what other resources you can bring to the table, etc.

It’s not always about size in life, but in this case we do advise clients that the larger your franchise financing requirement is - well you should be expected to have a more detailed proposal and plan.

Franchisees in Canada may not be aware that their biggest ally Vis a Vis a financing option for their new business is the Canadian government! That tends to floor our clients when we share that info with them - but the reality is that the majority of the financing in Canada for franchisees revolves around a government sponsored loan that is formally called the BIL or CSBF loan program. It is underwritten by he government, but administered by the banks in Canada

Rates for the above mentioned franchise funding and loan program are very competitive and there are some key requirements you should have ready when you submit your proposal for consideration. And by the way, OPM does not work in franchise financing in Canada - that being the acronym for other peoples money! We are always explaining to clients that the funding of their business comes from two sources, the loan or loans, and their own personal equity injection - so you must absolutely be prepared to make a personal equity investment in the business.

How much of your own equity is required - that can be calculated by simple formulas pertaining to the amount you have to borrow and your ability to meet debt to equity ratios and working capital solvency .

There are some great franchise opportunities in Canada. Investigate your financing options with a trusted, credible, and experienced Canadian business financing advisor who will work wit you as a potential franchisee to achieve business financing 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 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


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