End Your Canadian Franchise Lending Worries – Financing & Funding Lenders & Solutions For You !

Will you be ready with financing for your franchise when your franchise application is approved? Are you fully up to speed with how franchise lending and financing works in Canada. And finally, how exactly does the funding of your franchise business work and who are the lenders that participate in this area of Canadian business.

Wow... that’s a good solid handful of questions, so let’s explore the answers to stage 2 of your current predicament. Stage 1 is of course the thought and time that you put into selecting your franchise business to ensure you were on the right track to entrepreneurial freedom.

We wont be exploring the reasons why you picked any certain franchise, that’s your decision, motivated no doubt by opportunity and the ability to create personal wealth. But we do recognize that franchise lending might be a challenge to yourself, and the financing and funding of your business has left you a bit worried, to say the lease. So let’s end those worries.

In preparation for the financing of your new business there are a couple of pre-requisites that have the ability to stop you right out of the gate. Let’s make sure you know what those are and how to address them.

One of those key issues is your ability to demonstrate two things, a reasonable personal credit history and some business experience. Naturally it helps if you have some industry experience, but it’s not critical. By industry experience we mean, as an example, that if you are buying a QSR (QUICK SERVICE RESTAURANT) that you have some expertise in that area. But do you know what, if you can prove you can translate other business skills into the management of this business we're pretty sure that’s a big plus.

The other key element that will eliminate your worries about getting approved by franchise lenders is what your proposal looks like. Proposal? Whats that we can hear clients say?

Well you can call it what you want, a ‘proposal ‘, ' business plan '... ‘Executive summary '... etc. Bottom line is that this document, when properly presented, has the ability to again eliminate a huge amount of the worries you have had on achieving the financing you need.

Whats in that document? It’s not as bad as you think, it’s simply a profile of yourself, the new business you're buying, info on the franchisor, and a financial plan. No surprise there on the financial plan, lenders seem to want to know how they will be repaid!

Oh yes, those ' lenders ‘. Who are they in the Canadian franchising marketplace? Actually we're not betting people, but we would wager that you won’t guess that the government is probably one of the largest franchise lending and financing partners in Canada. How is that ?It's because they sponsor the BIL /CSBF program, which underwrites most Canadian franchises that are under 350k or so in purchase price .

Other lenders include one or two major independent finance companies, as well as numerous equipt financing firms that have specialization in areas of franchise equipment finance.

So is there a way to pull it altogether, i.e. eliminate those worries about franchise financing approval, and focusing in on who can help fund your business. One solid recommendation is to seek and speak to a trusted, credible and experienced Canadian business financing advisor who can ensure your business is financed properly , at the same time eliminating those worries you had about who, and how ?

P.S. We can't overemphasize the need to work with an expert in this area.






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 .Info re: Canadian business financing & contact details :

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

How To Get A Canadian Business Loan For Franchise Funding – Solid Franchising Lending Tips

They usually always start with only one question. Who is ' they '? Its clients with that age old question ' How hard or difficult is it to get a business loan for a franchise in Canada these days? They of course have made one of the biggest decisions in their lives/ careers, vis a vis becoming a franchisee in this booming industry - now the only problem is ...' What type of franchise lending and funding is available ?'

Well, we'll share with you some tested and proven strategies around franchise financing in Canada, focusing on completing a successful transaction in a minimum amount of time, with a finance plan that works for you, not just the lender!

On its own franchising has somehow become an industry with a strong and viable reputation. It, like all industries was hammered hard during the 2008-2009 recession; bus has bounced back strongly, even moreso than many other industries.

So, it becomes a simply two part question then, can you get a franchise loan these days, and more importantly, how?

There are some key factors to consider, one of which is simply aligning you, hopefully with a strong franchisor. So once you have made the decision to partner with a franchisor (we use partner because we think they need you as much as you need them!) you only need one thing. Whats that one thing?

It's a ' package '. By that we of course mean that you need a solid little package that convinces both the franchisor, and of course moreso the lender that you are equipped, from a financial and planning perspective to be a winner as a franchisee.

So what are the key elements of a successful winning plan? It's really pretty basic stuff, and in our experience many good franchisors have already done a good job of helping you prepare for this. Those key elements are as follows - an overview of your own background and experience, an overview of the franchisors business ( its your new business too, by the way!) and a solid financial plan that demonstrates two things: how you will make money , and of interest to the lender, what type of cash flow you will have to repay the loan!

It’s a bit of mis information when franchisees come to us having assumed the franchisor helps them get the financing. Some do assist in a mild sort of way, but we can assure you that you're on your own when it comes to achieving final success.

So the question then becomes how do you get prepared and qualified? Answers as follows! Get working on that business and financial plan we talked about. Identify the amount that you can contribute to the business, essentially your ' owner equity ', with the rest coming from your loan or loans. Typically a minimum of 10% and up to 30-40% is required.

It's always helpful to know how the last guy succeeded, don’t you think. In reality the largest per cent of franchise financing in Canada is done via a government sponsored loan that’s formally called the BIL/CSBF program. Why that loan , and why you should investigate it ?Some great reasons are 5-7 year payback terms, great market interest rates, no pre payment penalties , and you don’t even have to personally guarantee the full loan . Is there a better deal in town? Maybe, it just that we haven’t found it.

We also hasten to add that for any type of business loan, and certainly in franchise lending, the funding and approval of your loan assumes you have a reasonable personal credit history.

So, want to get with the program? Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you to meet your franchise funding and lending needs, today!




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 .Info re: Canadian business financing & contact details :

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

How Charlie Sheen and I Discovered How Financing a Franchise Works – A Canadian Franchise Lending Loan Business Story !

This is a strange one. I had a dream last night that I was on a business trip searching for the answer to financing a franchise in Canada. To many people franchise lending and getting a franchise loan for their new business is a challenge.
I wanted to reduce the risk and increase the chances of success for Canadian franchisees.

When I returned from the trip who did I find at our offices but Charlie Sheen, a very famous personality these days. I was surprised but I simply figured that he too wanted to know the secrets and inside tips on franchise financing in Canada. So not too surprising that he had such a strong interest in this area.

Charlie wanted to know about my trip - he seemed excited about being able to know the methods in which franchises were financed in Canada - he seemed totally interested in everything I was about to share .

I told Charlie that I had stumbled upon the exact method under which most franchises were financing in Canada, and moreso, I knew exactly how to complete transactions successfully. He was all ears.

In order to access the capital you need for financing a franchise in Canada wouldn't it be safe to say that you needed to understand who is offering this financing. I told Charlie that although there are a very small handful of specialized firms in franchise finance that the actual majority of franchise lending in Canada is done under a specific program called the CSBF program. It is underwritten and sponsored by Industry Canada, and the government mandates that Canadian banks ' administer ' the program. Charlie’s eyes were locked on mine. He couldn’t believe government on a daily basis was financing franchises.

Charlies asked if it was possible to ensure that the whole process of obtaining a business franchise loan wasn’t time consuming and frustrating. I assured him that if the prospective franchisee was properly prepared it was a smooth process.

Charlie wanted to know more. ‘So this actually works?' he asked. I assured him it did. To keep it simple for Charlie I explained that a good way of sizing up your ability to get approved is thinking like the lender. In small business financing, because that’s what a franchise is, the focus is on what some call the 4 C’s.

Charlie moved closer. What are the 4 C's he asked? I explained that they were character, capital, capacity and credit. Simply speaking if you have a good business reputation and experience, some funds of your own, and reasonable personal credit history then the ' capacity ' to repay the loan becomes significantly enhanced - bottom line - you will be approved!

Charlie had a question - ' Are you saying that if I am properly prepared I can be successful in financing a franchise?" Exactly, I replied. Ensure that your experienced and credible Canadian business financing advisor works with you to achieve a package that includes a solid business plan, an overview of your experience, a documented cash flow repayment, as well as your ability to put a reasonable personal investment into your new business.

Charlie wanted to know how we could share this knowledge - he suggested a Cross Canada tour we would call ' The Torpedo of Franchise Financing Truth ‘. Not necessary I said , lets just advise Canadian franchisees to seek the services of a trusted, credible an experienced Canadian business financing advisor who will assist them to get the franchise loan and financing they need to begin their new role as entrepreneur/ business owner.

I’ll always wonder if Charlie had the same dream?

--

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/financing_a_franchise_lending_loan_business.html