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 loans. Show all posts
Showing posts with label franchise loans. Show all posts

Friday, February 3, 2012

Baffled By Franchise Loans In Canada? Beating Franchisee Financing Challenges






Uncomplicate Canadian Franchise Financing


Information on franchise loans in Canada. How can the entrepreneur take the mystery out of franchisee financing and funding for their business acquisition from the franchisor or resale .


Safe to say that many potential franchisees considering the purchase of their business are somewhat baffled by some key issues which ultimately could affect the success of their business purchase.

Basic things, such as have they chosen the right franchise that suits their skills, interests, have they investigated the basics of franchisee financing in Canada, and do they have the resources and time and information to properly complete the purchase . In some cases their funding might involve the purchase of an existing business in the franchise model, i.e. a sale from a current franchisee, In that case their question is ' are their franchise loans to cover off the purchase of a resale franchise ' and how do they differ from a new unit purchase?

All are key issues that warrant special consideration. We are often amused because we see clients at both ends of the extreme; some thing that franchising is rife with pitfalls and risk and simply a bit too complicated, while at the other end of the spectrum there are those that seem to consider the whole process somewhat of a ' cake walk ' and arent really prepared to focus on issues that will make or break their success.

Does it make sense to align yourself with a Canadian or a U.S. franchisor? There's probably no absolute answer on that one, but we will offer up that all things being equal you will find that no matter on what side of the border your franchisor is domiciled key areas such as their current success, prospects, financial stability, and management team and support all are key to your success - So focus on those issues .

It may be surprising to know that one of the current challenges in the industry is the fact that it's difficult for a franchise owner to expand and grow additional units in his or her mini empire. However when this can be achieved as an entrepreneur you now have the ability to expand your success with a minimum of capital, leveraging your ability to increases profits and value in your enterprise.

Franchisee's need to be in a position to properly address the financial benefits of their purchase. Their ability to realistically assess the total profit potential of their purchase, as well as the ability to maintain an income and lifestyle they desire are key. This is best achieved by proper financial planning via a business plan and growth analysis of the business. This can be prepared by the franchisee or with the aid of their accountant, advisor, etc. The worst thing any potential purchasor can do is not address the financial risk and return on investment in a business purchase - that of course goes for purchasing a franchise or any business for that matter.

In Canada franchise loans can be accomplished in several ways. You have the option of dealing with a specialized franchise finance firm, but their assistance may be limited to franchise systems you personally are not interested in, or perhaps don't have financial strength to participate in. Franchises these days range in size from a few thousand dollars to several million, and everything in between. Focus on matching your personal financial commitment to the franchise and aligning it with the total investment you need to consummate your purchase.

Thousands of Canadian entrepreneurs choose the Government BIL loan program to complete their franchisee financing goals. Key benefits are a modest investment of your personal funds, and very acceptable rates, terms and structures when it comes to your personal guarantee, ability to repay without penalty, etc. Investigation of this program is highly recommended.

Purchasing a resale franchise if a very viable strategy. Franchise loans and funding for this type of purchase are also available, but the process is a bit different, simply because you're purchasing an existing business. Key elements of a resale purchase are validation of existing financials, valuation of assets already in the business, and a financing that covers off an asset sale as opposed to a share sale.

With the proper assistance Canadian entrepreneurs should not be' baffled' with either the selection of a franchise or the financing of it. Speak to a trusted, credible and experienced Canadian business financing advisor to get the right objective advice and assistance you need.




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_loans_franchising_financing_funding.html



Friday, January 27, 2012

2.5 Things You Need To Know About Franchise Loans ! Money And Funding For A Business Loan In Franchising





Power Your Franchise Dream With The Right Financing

Information on franchise loans in Canada . How do entrepreneurs find money for franchising and what type of loan and funding program is available ?



2.5? Actually we'll round that one up to 3. We're talking about franchise loans in Canada. As a potential franchisee you're looking for money for franchising the entrepreneurial dream. Let's cover off some key points in funding that loan and ensuring things are done right.

Point # 1 - Is it possible to go it alone? While it may be possible for you to cover off all aspects of your purchase, including selecting your chosen business, validating it, planning for it, and ensuring it's financed properly we certainly don't recommend that. We remind clients that even some of the largest companies in the world with all the smarts they might have internally, solicit help from their advisors, lawyers, bankers, peers, etc.

In many ways the Canadian franchisee is even putting more ' on the line' than a large corporation, as he or she is pledging personal assets, collapsing some level of savings and investments, and waiving their rights to explore other career or job opportunities by virtue of selecting a franchise.

We think most clients think that a lot of the advice and assistance might be costly. Not necessarily, many franchise consultants who assist firms in fact are compensated by the franchisor, not you, as an example. And the unbiased and professional advice you might get from a franchise lawyer is quite often many times worth the price of admission.

Don't forget also that your chosen franchisor is probably a treasure trove of assistance, including putting you in touch with other unit owner in their system to share experiences and ' how to ' .

Point # 2- Does getting money and funding for franchising loans differ from any other commercial lending .The short answer we give clients is the proverbial ' yes ' and ' no '. Let's clarify. We firmly believe that franchise funding does not eliminate any of the basics of business loans, as compared to if you were starting or buying g your own business outside the franchise model. The same pre- requisites apply. They include a business plan, cash flow planning, evaluating finance alternatives, and ensuring you have the right amount of debt and equity capital

Where things might differ a bit is that in most cases you don't have the same options as the typical commercial borrower. And quite honestly, no matter low large your franchise might be you are traditionally viewed as a ' small business borrower. The bottom line though is that there are concrete options for financing your purchase, they are just a bit more limited,


Point # 3 - How does the franchisee determine what amount of financing he or she needs? A couple key factors come into play here. First of all the obvious one, the size of your franchise. In Canada you can buy franchises for only a nominal investment, or you can borrow and invest up to a million dollars or more. That’s a broad spectrum! Remember also that franchises that require asset financing are going to incur higher borrowing needs. Asset financing in a franchise consists of leaseholds, equipment, computers an point of sale equipment, etc. Many franchisees we talk to unfortunately also are not focusing on the amount of working capital they needs to grow and operate their business after they purchase it.

As an entrepreneur you want to ensure you successfully attain the Canadian dream of owning your own business. That option is being considered by more business owners everyday. North American stats show that approximately 5% of franchises fail. Use our info wisely to ensure you're in that other 95%. Speak to a trusted, credible and experienced Canadian business financing advisor for guidance on your franchise loans.




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_loans_money_for_franchising_funding_loan.html


Friday, January 20, 2012

7 Guaranteed Ways To Fail In Canadian Franchise Loans. Franchisee Financing Done Right !






Use This Information On How Not To Fail When You’re Purchasing A Franchise In Canada !

Information on Canadian franchise loans. How does franchisee financing work in Canada and how can entrepreneurs avoid failure and guarantee success.



It's a given fact that some franchises fail. We all know that. We love providing guarantees to clients. But are there some guaranteed ways to fail. Nothing like a guarantee, right?

We're hoping that entrepreneurs considering franchise loans for franchisee financing in the Canadian marketplace take some of our advice, and by the way, that's on how NOT to fail!

Guaranteed failure point # 1 - Expect your franchise to either help or provide you with financing in Canada. That is a sure fire method of failure. While many franchisors have some relationships with certain organizations or financial institutions never forget that they are in fact in the business of selling franchises, not financing them. We will concede thought that lately we have heard rumblings of U.SS franchisors who are getting more involved in providing assistance and franchise loans for some of their units but we certainly haven’t seen any serious evidence of that in Canada.

So if you cant rely on your franchisor to provide you with financing assistance ensure that you have access to experience and relationships that can in fact assist your with completing your finance plan around your purchase. And while your franchisor may ' point ' you to some financing that may assist you it's safe to assume there are no guarantees.

Guaranteed failure point # 2- Don't explore your options. Another great way to fail... not recommended though! While the options to finance your franchise in the Canadian marketplace are certainly not abundant they do in fact exist if you are armed with the right knowledge and contacts. Never ever assume that you have to finance your purchase through your own bank, in fact some banks publicly or privately stay away from certain industries, and hospitality is an example. And that’s not good news for the thousands of entrepreneurs that want a part of this industry! So, take the proverbial advice of ' shopping around' for either a franchise financing expert or an institution that understands and is committed to your success.

Guaranteed failure point # 3- Borrow more than you can afford for your franchise. Another great way to ensure non success! Remember of course that the people providing franchise financing actually expect to be paid, in full! Larger loans translate into larger payments and cash flow concerns, so ensure that your financing has a proper mix of debt and your own equity. Remember that the optimal financing allows your business to succeed, grow, and pay you salary while building owner equity.
Guaranteed failure point # 4- Pick any franchisor... after all they are all proven business models, right? Well, not really. There is downside to any business, and certain industries and markets fall in and out of favor over time. So carefully assess your opportunity from both of course the financial perspective, as well as the overall market perspective. Your franchisor can be a Canadian organization, or a licensee of a U.S. company. Use the franchising disclosure laws in Canada to properly do your due diligence.

Guaranteed failure point #5 - Skimp on your financing. Borrow less, so you won't have to repay as much... right. Wrong! Don't cut corners when it comes to franchise loans and franchisee financing for your Canadian business. Understand your costs, and remember that you need to focus on two areas, purchasing your business, and then growing it. A proper combination of long term debt and working capital is needed. Don't let the excitement of owning your own business cloud the financial realities of what it takes to be successful in any business, franchising included.

Guaranteed failure point # 6- Assume sales are profits. Guess what? They are not. Build a proper business plan and ensure you have a solid handle on cash flow. An experienced Canadian business franchising advisor can help you here.

Guaranteed failure point # 7- Assume you know how to finance a franchise, or that it is easy. It's not necessarily the case. Understand your financing options, which in Canada exist, but are somewhat limited. Negotiate a fair price for your chosen business. Terms and rates in franchise financing vary, whether you are using 3rd party independent financing or the BIL franchise loan. As stated previously, borrow the right amount you need, whether you are purchasing a new unit or buying an existing franchisee out.

So there you have it. 7 guaranteed, yes guaranteed ways to fail at franchise financing. And by the way, we want you to succeed! , not fail, so speak to a trusted, credible and experienced Canadian business financing advisor who can help you with franchise loans and franchisee financing in the Canadian market space.







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_loans_franchisee_financing_canadian.html