Best Way To Finance A Franchise ? We've Got Them !

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How To Finance A Franchise

Franchise Financing Options ! You're there. You have made the decision. You're committed. You have timelines now. We're talking about your franchise finance decision and the next challenge you have in the franchise process - financing a franchise. How many ways to finance a franchise are there? Only one... the right way! And we'll show you how.

Steps to a Successful Best Way To Finance A Franchise

The ability to finance your franchise properly and satisfy the requirements of the franchisor without putting you overly in debt is what it’s all about of course. And if you do it right then you of course have the potential to grow a business, profit from it, and build owner equity for either long term resale of personal financial gain. That's simply what it's all about, and boy does it help if you like what you are doing, at the same time taking on the entrepreneurship role in Canadian business.

The good news is that your are lucky, because franchising couldn’t be any hotter or more popular. Franchises move goods and services in the billions in Canada, and you're now part of that movement.

But let’s be realistic, whether it’s a franchise investment of any other business start up the same critical needs apply relative to planning and financing.

Homework. Did you hate it in school? Well here it is again because we strongly suggest to clients that you are now in homework mode when determining how financing a franchise works. It’s all about planning, which includes ensuring you have a profitable potential business on your hands, as well as understanding ways to finance a franchise in Canada.

Business plans are critical to your franchise investment. It's a case of demonstrating your business has both profit potential plus, and this is what interests the lender, that you have the ability to repay your debt and loans. The franchisor naturally is interested in long term success of the chain, and your ability to pay royalties as they become due, usually monthly.

When you address the franchise finance decision you must consider a number of items - they are as follows - what is the total all in cost, what methods are available to finance each part of the cost breakdown, and finally, and perhaps most importantly, how is the actual financing done.

The costs to assess in a franchise finance investment are as follows - the initial franchise fee, the cost of fixed assets or leaseholds to your business - i.e. equipment, signage, vehicles if required, etc. And finally, if you did all that and didn’t address working capital for ongoing operations and growth then you are setting yourself up for failure.

Clients are always looking to us for a magic solution and a one stop finance strategy for their franchise investment. The closest we can come to that is the government BIL/CSBF loan, under which the majority of franchises are financing in Canada. You can successfully augment this strategy by equipment financing for a variety of assets as well as a small working capital loan, usually unsecured. Don't forget also that your own owner equity investment becomes the final piece of the puzzle.

Other ways to finance a franchise include term loans, equipment financing, etc. Bottom line is that the entrepreneur has options . Franchise financing lenders exist, you just have to know how to access them .

And getting back to our business plan, ensure that you have covered off all the debt you need and that if reflects your ability to pay it back.

Financing a franchise. Challenging? Yes, we guess so. Possible? Of course. Speak to a trusted, credible and experienced Canadian business financing advisor with franchise experience and a track record of business financing success who will help you navigate, successfully, the only way to finance your new business - the right way!





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

Click Here For 7 PARK AVENUE FINANCIAL website !


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

The Secret of Franchise Financing Loans

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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.



Stan Prokop

How To Finance A Franchise – Options Galore? !

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Everything You Need To Know About Franchising Finance Options In Canada


Information on franchise financing options in Canada. Franchise loans must be suited to the franchise business model and financing requirements

Entrepreneurs who wish to purchase a new or existing franchise are always asking us ‘What are my Financing Options?”. The ability to choose the right financing option (in reality it is the right mix of financing options) is one of the most important aspects of your entry into the purchase and running of a successful franchise in Canada.

It is of course very rare that a franchise can be purchased for all cash, as the amounts involved can be very significant. And in fact, as we will demonstrate, in many cases that would actually be the wrong thing to do. Even the largest and most successful corporations in the world take on debt, there is good debt and bad debt of course (as consumers we now that also. By utilizing the right mix of debt and your own equity you can properly ‘leverage’ the business for greater rewards and returns.

We will use a quick and somewhat blatant and unrealistic example just to illustrate our point. Let’s say that you wish to purchase a franchise for 250,000.00, which is certainly not an uncommon amount. You have the option of paying cash for it (lets pretend!), or you can put 10,000.00$ down and borrow the rest. At the end of one year your franchise nets 20,000.00 in net income, let’s assume. If you had only put in 10,000.00$ of your own money you have generated a 200% return on equity. Even Warren Buffet would be jealous of you. However, had you put in 250,000.00$ of our own money you can clearly see you have many years to go before you get a positive return on your significant initial investment.

So what's our bottom line ? Simply that debt and the right amount of leverage can be a good thing, and it’s an excellent way to measure the potential returns in any business, including your investment into a Canadian franchise.
Let’s return to our core topic, financing your franchise. The reality is that are several options in Canada to finance your purchase. Those options can relate to either a new or existing franchise – both are quite financeable. One of the main reasons you might wish to consider purchasing an existing franchise is that in some cases the track record and the assets in the business might present an easier case for financeability.

Franchise financing in Canada is absolutely a specialized type of financing. When we sit down with clients to evaluate their options d and focus on the quickest and best way to achieve franchise financing success we can summarize your financing options in the following manner –
-Government Small Business Loan – (By far the most common and popular)

-Your own personal equity or down payment (typically from 10-50%)

- Equipment and asset financing

- Working Capital Term Loan

- Operating facility for ongoing requirements

- VTB – (Vendor take back) – in some cases the franchisor or the seller of the current franchise will waive full payment and agree on a final pre agreed upon payment to be made at some point in the future




Whether you consider yourself financially astute, or if you are concerned and worried that you don’t know enough about financing in general, it is strong recommended you align yourself with a trusted, credible and experienced advisor in franchise financing. Understanding your options, picking your options, and executing on those options within your timelines is the key to franchise financing success.






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

A Franchise Loan Need : No Miracle Required For Loans For Franchises

Let Franchise Financing Be Your Success Story In Entrepreneurship

OVERVIEW – Information on loans for franchises in Canada . What are the key elements of franchise loan success for the new or existing franchisee








Loans for franchises in Canada have the ability to make entrepreneurship a true success story in Canadian business - being unsuccessful brings the opposite. Let's dig in.

A franchise loan in Canada, achieved properly and under the right circumstances gives the franchisee the ability to acquire and grow a small business into a larger successful business. Unfortunately there is no ' instruction manual ' on getting franchise financing done right , so we'll share some sound strategies and info on ensuring you're a part of the Canadian franchise success story .

While there are always different factors why a franchise might fail - i.e. lack of management, experience, a poor choice for franchisor or location , etc its a pretty sure thing that financing done properly is also at the heart of franchise success.

Not having the right amount funding will always be a setback for the new franchisee - most will agree it sets up a recipe for guaranteed failure. That undercapitalization comes from a couple of key mistakes made by the new franchisee:

Inability to truly understand their operating costs

Poor start up estimates

No back up plan if additional equity is required

Lack of working capital after the franchise is acquired

Poor planning for future investments required in assets, working capital, renovations, etc

There is no easy money when it comes to franchise loans in Canada. While the U.S. market has a substantial number of other financing options the Canadian franchisee must choose from a small handful of finance options - therefore re-enforcing the need to do things right.

Those franchise options? They include specialty franchise funding from the one or two players in Canada offering this financing, the Govt Small Business Loan , and a combination of commercial finance solutions via equipment financing, leasehold finance, merchant cash flow advances,

Whether it’s a franchise loan or any other type of business financing leverage, i.e. the right amount of debt is key to business success. Typical satisfactory debt to equity ratios for franchise financing are in the 2:1 OR 3:1 range, meaning simply that the owner should have at least a half or a third of the total capital committed personally .

Those funds typically come from savings, but we always encourage franchisees to never over commit personal capital and not to collapse registered investments or take on collateral mortgages on personal property. Bottom line - don't mix your personal and business finances in the wrong manner.

If you're looking to be a ' SUCCESS STORY ' in Canadian franchise financing when it comes to a franchise loan seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can help that ' miracle needed ' process along .




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 EXPERTISE IN LOANS FOR FRANCHISES











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 '

Stan Prokop

Franchise Loan Search : How Not To Ruin Franchising Opportunities In Canada

Franchise Financing : If Opportunity Knocks Are You Ready? Here’s Your Backstage Pass

OVERVIEW – Information on financing franchise opportunities in Canada . Getting a Franchise Loan Approved Is About The Right Info With The Right assistance




A franchise loan search in Canada, when it comes to exploiting franchising opportunities that appeal the entrepreneur can be a daunting search. In fact top experts tell us that the industry as a whole recognizes the fact that access to the right amount of loans and financing is ' top of mind' for new and existing franchisees. Let's provide a bit of a ' backstage pass ‘into critical aspects of this challenge. Let's dig in.

Franchisees in Canada have access to numerous services provided by their franchisor and other members of their ' team'. However actual loan financing tends not to be one of them.

Almost all franchisors provide a portfolio of ser vices around location, training, business development and other aspects of franchise survival. Is anything missing in all that assistance - Most often it’s financing!

It comes down to some pretty simple basics - knowing who finances franchises, understanding how they are financed, and knowing if you qualify for the capital you need to both acquire, operate , and grow the business.

Think of it as basically matching your profile to the right amount of capital - simple as that.

So what are those key basics that the franchisee, he or she, must have under their belt? They include:

Understanding term debt and operating capital needs for both acquisition and ongoing operations

Knowing the amount of capital that you need to invest as an equity investment that satisfies the franchisor, your lender, and the capital structure and ongoing needs of the business (Too many franchisees we work with underestimate long term needs for credit facilities and asset replenishment)

If you are approved for a franchise loan is there a clear understanding as to how the loan will be repaid out of cash flow and profits (The cash flow in your business plan must be realistic and allow for contingencies)

The ability to assess how much personal collateral/guarantees are required

In Canada franchise loans are made by a small handful of specialty lenders as well as the often used Govt Small Business Loan ( SBL) which has evolved into being perfectly suited for the acquisition of a franchise . Interest rates by specialty lenders as well the SBL loan are very reasonable , in our opinion and misc. set up fees or processing fees are ultra reasonable in the scheme of things.

The forms of finance you undertake come under 3 categories:

Assets
Leaseholds
Operating Capital

You need the right mix of financing to successfully attain all three. Numerous external financiers such as equipment lessors and working capital lenders (term and operating) round out the financing of franchise opportunities.

The most clarity to your financing needs will come out of your business plan, which will include info on yourself, aka the ' franchisee', as well as the industry, the business model, and solid financial projections that provide a road map to the right financing.

To ensure you're ready for a franchise loan when opportunity knocks in this industry seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your loan needs.





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 Financing Expertise





Stan Prokop







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 '

Stan Prokop

Franchising Success Is Pretty Well Guaranteed With The Right Franchise Loan For Profitable Franchises In Canada

Just Say ‘ Yes ‘ When It Comes To Profitable Franchises

OVERVIEW – Information on franchising profitable franchises in Canada . The right franchise loan can make or break entrepreneurial success . Whether specialty lending or utilizing the BIL program it’s important to understand requirements and issues




Success via a profitable franchise is of course the dream of every franchisee entrepreneur when he or she is seeking a franchise loan. While most would agree that nothing is ' guaranteed' in business profitable franchises within growing industries certainly provide a strong level of comfort to the borrower. Let's dig in.

When applying for a franchise loan (these are done via a specialty lender or under the BIL program in Canada) the concept of profits as they relate to cash flow and loan repayment are key.

In the case of a turnkey situation the franchisee and the lender of course will rely on the business plan and cash flow projections of the borrower. Loans are repaid from cash flow; it’s as simple as that. So your ability to project reasonable success in a business plan and cash flow statement is key.

We often meet with clients who are looking for a bit of a different story when it comes to a franchise loan. That story? They either wish to purchase an existing franchise from a current operator or, in some cases wish to complete a parternership buyout. (Partnerships are difficult!)

In the case of ' refranchising ' - i.e. the purchase of an existing location it’s critical to get a strong handle on the current financials of the business. If in fact is a predominantly cash business ( a huge per cent age of franchises are ) its critical to understand what happens to cash ( !) , is cash being reported and recorded properly , and if its sufficient to repay both existing and new debt . One tactic we've used successfully over the years is to ensure we are provided with 3 months of bank statements and credit card transactions to allow us to see the inflows and outflows of cash.

Again, staying with the idea of purchasing an existing business, it’s critical to get an appraisal done on the existing assets and leaseholds. These will form the basis for any term loan refinancing, and you want, as a prospective buyer to get a handle on current values, replacement values, and liquidation values. Those are of key interest to your lender also.

Many franchisors these days will mandate ongoing replenishment of leaseholds and assets to keep the business ' fresh '. That’s why your business plan and cash flow projections (if you're not in a service business) should account for ongoing asset upgrades as needed.

Leaseholds are difficult to finance and they are in many cases best financed via the Govt SBL loan which allows for this type of financing. (It’s difficult for many lenders to accept ' fresh paint' as collateral for your loan!)

Your business plan and cash flow is often best when you approach it as a living document - using it to answer basic questions of profitability, cash flow, reasonable growth, etc. We recommend that down the road the franchisee revisit the plan as a useful template to track financial and personal goal success.

Purchasing a franchise in a sector that has a strong chance of profit is part of the winning combination of franchising in Canada. The properly constructed franchise loan and financing plan will help guarantee this success. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can help you achieve that guarantee.


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 Financing Loan 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

905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '


























Stan Prokop

Franchise Loan? The Benefits Of Properly Arranged Business Franchising Loans In Canada

Thinking Complicated When It Comes To Franchise Financing ?

OVERVIEW – Information on the Canadian franchise loan . Doing it right when it comes to business franchising loans helps guarantee entrepreneurial success



Business franchising loans in Canada. Two things come to our mind when it comes to a franchise loan in Canada. First of all, it doesn't have to be complicated when it comes to addressing the sources of financing and getting experienced assistance in completing your finance.

Secondly, as in any aspect of business ' doing it right ' has a lot of benefits. More so for the entrepreneur who wants to be successful in either the turnkey franchise he or she has opened, or perhaps bought from an existing franchisee or franchisor. Let's dig in!

When it comes to borrowing for a franchise business it’s a question of not over borrowing, but at the same time getting the right amount of capital you need. Franchisees that have an ' all cash ' business - i.e. in the hospitality / restaurant area have a bit of an advantage because their working capital needs are more limited. Franchises selling to clients in a B2B (business to business) environment have to think of addressing the same issues as any other company in Canada - i.e. how to plan for financing receivables, inventory and future capital cost needs?

Franchise sizes, in terms of cost to purchase, range anywhere from 5k to the millions of dollars. That's quite a spread - and the franchisee should be prepared to put in anywhere from 10 -50% from an owner equity / down payment scenario.

It's important to ensure you have the personal capital to invest in the franchise - both your franchisor and your finance partner/partners will want you to prove your ability to demonstrate that you can meet the required equity requirements. This is typically easily accomplished by providing your franchisor, and lender with a completed ' PNW ' - Personal net worth form that shows the make up and liquidity of your personal assets.

Also, it is difficult, if not impossible to finance certain intangibles such as the franchise fee itself - so that typically comes from the owners pockets.

Knowing the types of financing available and who offers this finance will uncomplicated your pursuit of financing. If you are not dealing with a ' Specialty ' lender whose sole focus is franchise finance then a logical other alternative is the SBL / BIL loan program that is supported by Industry Canada.

Financing you need will typically be in the form of a term loan and potentially an overdraft / line of credit. Many hospitality type franchises finance their future sales through innovate ' merchant advance ' type loans, although they come at a higher financing cost.

Business franchising loans get really uncomplicated if you have a slick, clean loan financing package. Key elements are a business plan, cash flow, info on yourself and the franchisor. Other miscellaneous requirements are in fact that same as any other type of financing sought by businesses.

Remember that the franchise lender, unlike you, doesn’t share ownership and profits. Their goal is a lot more simple - getting paid from your profits and cash flow - so demonstrate that repayment clearly in your work.

We repeat – the franchise loan process in Canada is as complicated as you make it – it certainly doesn’t have to be with proper knowledge and assistance. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with franchising loans that suit your individual needs.




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 = Canadian Franchise Loan Expertise




CONTACT:
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

Good Bye Failure – Hello Success In Franchisee Financing In Canada . It’s All About Who And What In A Franchise Loan

Canadian Franchise Finance . Tips and Insights


Information on how the Canadian franchisee entrepreneur can be successful in franchise financing in Canada . Key elements for franchise loan approval .



Franchisee financing in Canada. It goes nicely hand in hand with our contention; we're often told that it’s now what you know, it’s who you know. However, in the case of a franchise loan we think that both of those count.

It is very easy to see the appeal of franchising in Canada. In many ways it’s one aspect of the entrepreneurial dream, in effect ' no boss'. But the amount of time, effort and knowledge in being successful is of course critical.

The cost of a franchise in Canada from an overall point of view can be anywhere from small to very significant, depending on the type of franchise you purchase and its perceived financial potential.

The reality is that many smaller service type franchises can be purchased for a few thousands dollars, going all the way to some that might require a total investment of debt and equity in the millions. And everything in between!

You can solve a lot of the challenge that come with buying and financing a purchase by simply surrounding yourself with a small expert team. Some of the team might cost you something, other parts of it, like some solid professional and experienced advice is pretty well free.

So who's on first? as the old comedic saying goes. Your team might well consist of mentors and peers in your own business and personal life, or a lawyer, banker, accountant, or business financing advisor. It's safe to say that pretty well all of your team, if they are the right person, will dispense some very solid advice for little or no cost.

We're often asked by clients if there is a difference between purchasing from a Canadian franchisor or a U.S. firm, given the U.S probably offers hundreds, if not thousands of additional opportunities to purchase.

Most potential franchisees we talk to want to limit financial risk when it comes to a franchise loan and franchisee financing in Canada. How can they do that? A couple of instant suggestions would be to ensure you are incorporated, which just makes common sense also from a tax and financing perspective. You do intend to generate a profit after all!

You also need to seriously consider the right amount of debt and equity you are prepared to commit to. Too much of both is generally not a good thing, not enough of either is pretty well the same story. Your equity contribution has to be based on what you can personally commit and temper that of course with what you could potentially lose in a business failure. But let's stay optimistic for goodness sake, right!

Thousands of franchises in Canada are financed by the SBL government small business loan. Formally it’s known as the BIL/ CSBF program. We recommend it to many clients simply because it also limits your personal guarantee on the loan, and has fantastic, yes fantastic ( in our opinion )rates , terms and structures, including that limited personal covenant that we just mentioned.

So, hopefully you agree. It's a classic case of both who and what you know. Speak to a trusted, credible an experienced Canadian business financing advisor who can assist you in a franchise loan for your franchisee financing needs 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_loan_franchisee_financing_canada.html

Canadian Franchising - Key Components Of A Successful Loan For A New Or Existing Franchise

Financing A Franchise In Canada

Information on successful components of a franchise loan for a new or existing business in Canadian franchising .



Canadian franchising. Got your act together? The act we're referring to of course is your ability to successfully secure a franchise loan for a new or existing franchise in Canada.

Let's focus in on some critical components of what to do and with whom!

It's not as hard as you think to turn one of the most successful business models (franchising) into a successful financial solution for the acquisition of your business. Naturally you have the option of building or inventing your own business model in any industry but surely utilizing a proven method success already in place has significant appeal.

And the financing for your franchise can be focused on any number of industries where the franchise model is prevalent. You ability to be able to generates profits while duplicating the franchisors success is not limited to geographic issues , and , more importantly , the need to invest large amounts of capital when in fact you don't have to under the franchise model .

Many clients we talk to are looking at either acquiring an existing franchise as opposed to a new unit. There are advantages to both and we are pretty sure based on experience that neither, new or existing offer any superior advantage.

But our subject is of course focused on the financing re: your franchise loan .of that new or excising business. The one positive thing when you are considering a resale by an existing current franchisee is of course that you have access to financial performance of the existing owner.

That typically includes several years of financial statements and a proper disclosure of assets in the business. If the owner still has debt outstanding in the business that debt, in the form of bank loans or equipment leases or working capital loans, must be addressed in the context of your purchase and refinancing.

In the case of a franchise which has hard assets and leaseholds, (as opposed to a service business) an appraisal of those assets at fair market value is both recommended and in fact probably required.

We also point out to clients early in the process that they structure their purchase as an asset sale as opposed to a share sale , as share sales are exceptionally difficult to finance other than on an all cash basis - and then of course its not a financing per se, its a ' cash sale ' . A cash sale may or may not be the right thing to do. Too much equity certainly lowers your overall return on investment and ties up your personal assets, quite often permanently.

Don't forget also to address employee issues with respect to financing liability of any severance, termination scenarios, etc.

If you finance your Canadian franchising purchase via a government SBL loan (the preferred solution for many franchisees) an appraisal of an existing franchise is certainly required. If in fact a new or turnkey unit is under consideration you require a detailed business plan focusing on your experience, the industry in which you're going to participate, and a proper financial forecast that ' cash flows ' in a positive nature in order to retire the debt satisfactorily .

Other things you should focus on in your plan are customer profiles, competition analysis, etc.

Having a formal or informal network of business advisors, lawyer, accountant, and banker certainly helps.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who has the ability to turn your Canadian franchising dream into a success franchise loan resolution for a new or existing franchise.








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/canadian_franchising_franchise_loan_new.html

Want To Buy A Franchise? Need A Loan ? Here’s Your GPS to Loans for Franchises in Canada!

A Roadmap To Successful Canadian Financing For Franchises


Information on the proper method of obtaining a franchise loan in Canada . Loans for franchises are significantly different than regular business loans. Use this information as a roadmap and guide to franchising success when you buy a franchised business.





So... you want to buy a franchise. Why then our analogy to a GPS system? Simply because that type of gadget these days provides you with a road map for not getting lost, and from our perspective getting a franchise loan is the last place where you want to be lost and not knowing your position . Make sense? We think so.

Loans for franchises in Canada can be a combination of an exhilarating process and a frustrating one - the former referring to being approved and the latter referencing our conversations with clients who have been frustrated by the process.

Let share some solid ' road map' type information on ensuring you minimize the time and risk when you buy a franchise and consider a franchise loan. The reality is that in many ways we could make a case that ownership via a franchise business is actually significantly less risky that other types of businesses which are viewed as 'start up ' in nature.

The challenge becomes knowing which institutions and programs will make your franchise investment happen. It's a common fact that a large majority of business funding requests by entrepreneurs fail simply because they are poorly presented. So knowing how you can easily prequalify yourself, and putting together a basic package that presents yourself and your new business in the best manner is well, worth its weight in ' money ‘!.

In Canada franchises can be financed from a turnkey point of view, or in some cases you may wish to acquire a franchise from an existing franchisee in the system you are looking at. It's ironic, but one of the lesser know but larger challenges in the Canadian landscape is the ability of current franchisee's to add additional units to their first location .

So is it possible to prequalify yourself? We assure clients that a large part of that process can be done by themselves. They must demonstrate some level of either specific industry or general business experience, while also showing the lender that they have run their personal lives from a financial perspective in a manner that reflects solid stewardship. That means having a solid credit bureau score (650 tends to be the magic number) and it certainly helps to have assets such as a home, savings, etc.

We don’t suggest or recommend to clients that they leverage all or a very large amount of assets when considering loans for franchises. But certainly anywhere from 10-50% of a purchase price typically needs to be covered off by the franchisee. That’s your ' owner equity '.

You establish the amount of financing you need by putting together a fundamental business plan around your opening balance sheet. That will reflect your own cash investment, funds you have spent already, and what is needed to get you to a turnkey grand opening! That typically is equipment, leaseholds, perhaps real estate, etc.

In Canada franchise loan financing is generally done via an independent commercial finance company or the bank. But when we say the bank we are actually referring to the CSBF program which has provided thousands of franchise loans at terms typically enjoyed by established businesses.

So is there a guaranteed GPS road map to a business franchise loan. Never 100% but you can get very close to that by pre qualifying yourself realistically, putting together a solid package, and ensuring you know who finances loans for franchises in Canada. Speak to a trusted, credible and experienced Canadian business financing advisor for access to your road map for 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 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_loan_loans_for_franchises_buy.html