Franchising Loan Taking Too Long ? Franchise Business Loans In Canada

What It Takes For Successful Franchise Funding

OVERVIEW – Information on franchise business loans in Canada . Challenges related to a franchising loan can be overcome with the proper mix of information and expertise




Franchising business loans in Canada often come with a timeline experience that most franchisees have a huge problem in overcoming. How can that timeline for ultimate franchising loan success be shortened? Let's dig in.

Whether the potential franchisee is either purchasing a turnkey operation, or looking for a ' refranchising ' opportunity (i.e. buying an existing business) it’s all about getting approved. In certain cases the type of business opportunity that you purchase will affect financing approval - that might be either for the size of the transaction (too small / too large) or in some cases the type of business you are looking at.

Top experts tell us that currently businesses in the health care and hospitality sectors are ' hot ' - but the multitude of franchise opportunities out there continues to be enormous. The industry itself powers close to half the economy according to some pundits.

The shortfall that a franchisee faces when it comes to a total financing package often comes from owner equity. This certainly makes it even more difficult for entrepreneurs looking to purchase multi unit operations.

Rarely does the franchisor in Canada offer financing options - they sell franchises, they don't finance them - with their franchise fees and royalties helping to financing the expansion of their network.

In certain cases larger well known franchises with broad geographic exposure in Canada have aligned themselves with Canadian banks to offer a finance program. However this by no means guarantees approval and traditional lending criteria still applies. If franchisors were a bit more serious about assisting in the financing process some solutions might be lower franchise fees, royalty flexibility, subsidized financing, etc. Safe to say that probably won't happen!

Three basis finance solutions are available to the franchisee - they include:

Specialty franchise financing

The Govt CSBF loan

Supplemental financing by a variety of commercial financing firms offering equipment financing, merchant cash advances, working capital term loans, etc.

One or a combination of any of the above solutions will start your journey to financing success with the shortest timeline possible. At the end of the day it’s about expertise and information available to the borrower that will ensure faster credit approval.

Information that helps shorten your approval timeline includes a proper loan package that consists of owner personal financial info, a business plan or strong exec. Summary, a cash flow and loan repayment forecast, and pertinent information relating to the franchise you are purchasing regarding franchisor history/prospects.

If you are focused on fast and successful franchising loan approval seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can shorten timelines and ensure you are aware of all options.






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 :


http://www.7parkavenuefinancial.com/franchising-loan-franchise-business-loans.html




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

Financing A Franchise In Canada : Qualifications For Franchising Loan Success Explained

Do You Qualify For Franchise Financing In Canada ?

OVERVIEW – Information on financing a franchise in Canada . When it comes to finance qualifications for a franchising loan it’s important to know the criteria and what counts!




Financing a franchise in Canada comes with certain qualification criteria the franchisee must meet. What are these criteria, and what is the best way to overcome any obstacles in borrowing success for the Canadian franchisee entrepreneur? Let's dig in.

Business loans come with qualifiers, and when it comes to a franchising loan there's no difference there. Criteria for qualification and approval are made by specialty franchise lenders, banks, and commercial finance companies which often supplement and compliment a franchise finance package.

Fundamental to any financing proposal is the required reasonable personal credit history of the borrower. But how is this determined? The majority of the times it’s simply based on two fundamental factors - the personal ' net worth ' of the franchisee, and his or her credit rating at credit bureaus. (There are two main credit bureaus in Canada and your score won’t be dramatically different at one of the other). It's a numerical scoring system wherein a score of 650 is in fact the ' magic number ‘.

The net worth statement itself couldn’t be more basic - it’s a financial form that you complete that simply sows assets and liabilities - in simpler language, what you have and what you owe.

In Canada banks do a great job of advertising small business and franchise programs - the general consensus from' the street ' though is that the aggressive advertising is sometimes not reflective of the actual approval possibilities.

We'll leave it at that.









But when it comes to banks in Canada they don't necessarily finance franchises directly ( without a lot of personal collateral backing up the loan ) - they do however have specific programs in place with some of the larger well known franchisors that can fast track an approval . (Think hamburgers/clowns and hockey/donuts)

Where a Canadian chartered bank can do a great job for you (if you're working with the right banker) is under the auspices of INDUSTRY CANADA'S CSBF/BIL program, more commonly called the 'SBL ' loan.
Here's where any franchising loan fewer than 350k that covers assets and leaseholds (not working capital though) can be financed with solid terms - those include good interest rates, low personal guarantee, no repayment penalty, aggressive amortizations.

Other criteria for success in franchising loans include a solid business plan and cash flow projection, information on the background and expertise of the borrower, as well as effective narrative highlighting the current success of the franchisor.

If you are looking to succeed in the franchise industry in Canada financing a franchise properly is key to your success. Seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success 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 :


http://www.7parkavenuefinancial.com/financing-a-franchise-franchising-loan.html






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

Financing Franchise Opportunities In Canada: Are You On The Wrong Track With Your Franchising Loan

Understanding The Art ( Or Science?) Of Franchise Financing

OVERVIEW – Information on financing franchise opportunities In Canada. A Franchising Loan Done Right




Financing franchise opportunities in Canada may well be considered an art... or is it a Science. How does the franchisee entrepreneur get on the right track when it comes to a franchising loan? Let's dig in.

When it comes to financing your new franchise (either a new turnkey opportunity or purchasing an existing franchise) it's all about ensuring you are seeking, and have the wherewithal to complete... the right type of financing you require.

A key factor in that whole process is either the down payment or equity component that will be demanded by either your franchisor, your lender, or in some cases, both! When we talk to clients about franchising loans the down payment/equity they put up is also a sign of their individual comfort level or risk tolerance. Let's explain that one.

While we have noted that your down payment may well be a strict requirement the other two issues surrounding that are the entrepreneurs comfort level with the amount of debt they are taking on. They might view a larger down payment, if possible, as the method to reduce financial risk. It's important to note that the amount of risk around equity and debt that the franchisee is comfortable with is the same situation the largest corporations in the world struggle with also - namely capital structure and leverage.

By the way , that down payment or equity component can range anywhere from 10 to 50% based on the amount of financing you need, where you get it, and the type of loan or loans required to kick start and grow your new business.

We caution clients also that they must consider longer term financing issues, not necessarily just focusing on getting the business open. Down the road new assets may be required, and depending on the type of business you are considering it’s important to look at how you will finance inventory, receivables, equipment, and leaseholds required to keep your franchise ' up to snuff'.

Your ability to demonstrate how you will pay back financing that’s required will essentially always come out of your business plan and cash flow forecasts. They need to be tailored to your overall business model - the lender or lenders in franchise financing arent your new equity partners - they share no upside, just the downside of seeing their loans not repaid. Demonstrating proper cash flow is key!

When it comes to repaying franchise loans its all about sales, so focus properly on realistic sales and breakeven statistics.

So where does your franchising loan come from in Canada. If it is not from a select franchise specialty lender then another popular finance vehicle is the Canadian BIL loan, that’s perfectly suited to finance many franchises. It is attractive in terms of low personal guarantee, equity required, repayment, and by the way it also finances leasehold improvements and construction if that’s a key part of opening your business.

Take some time to understand what finance offerings are available that suit your particular needs, whether it be in the popular hospitality (restaurant/hotel) area or a service type of business.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your franchising loan needs. Get that right combo of ' art ' and ' science' working for your franchise opportunity.



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 Financing 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

Phone = 905 829 2653

Email = sprokop@7parkavenuefinancial.com

Stan Prokop

Franchise Business Loans In Canada . What You Can And Can’t Finance With A Franchising Loan

Avoid Doing Something Wrong With A Franchising Loan


Information on franchise business loans in Canada . What part of your franchising opportunity can be financed via a loan and where does the franchisee go to seek proper franchise finance advice?



Franchise business loans in Canada. Can the prospective franchisee avoid doing something really wrong when arranging their franchising loan? We think we can help clarify, so let's dig in.

While a lot of entrepreneurs focus on the particular business or industry segment they are looking to participate in they sometimes sorely miss looking at how the franchise financing industry operates. It's somewhat of a given that it’s up to you to pick the franchise that best suits your talent, expertise, and budget. But when it comes to financing your business are you 100% sure of the expectations of your lender or lenders.

If there is any good news is that you do have some solid options available to yourself when financing your new business.

What exactly are some of the key elements of any franchise finance scenario? Well, they include the franchisee fee, equipment, leaseholds, working capital, and ongoing capital and cash flow needs.

Leaseholds are one of the most misunderstood aspects of the franchise finance mystery or conundrum. Typical leaseholds might include construction, HVAC, plumbing, lighting drywall, etc. If your franchise is not going to be fully financed by a specialty franchise lender then the best solution to financing leaseholds is under the auspices of the Govt small business loan program, In fact this program was designed solely for two asset categories - equipment... and the leaseholds we have been talking about .

In certain cases the franchise lender may wish the co operation of your landlord when it comes to what is understood as collateral in the terms of your agreement with the landlord. The situation can sometimes become more complex if there is not clarity and understanding around certain assets that you as a franchisee may have thought was a leasehold improvement as opposed to assets that become attached to the building such as oven hoods, etc. (That’s in the case of restaurants, etc)

At the end of the day it’s both the combined quality of the franchise you are buying as well as your own financial strength as determine by opening balance sheet and projected revenues and profits.

If there is one continuous misunderstanding or misconception that we see in discussions with clients on franchise business loans it’s as follows: The franchisor rarely plays a key role in franchise finance. That’s your job, or the job of you and you Canadian business financing advisor. At the end of the day your goal is simple - you want to be in a position to raise the right amount of capital you need to open and develop your business for success. Only the smallest percentage of franchisors in Canada offer any real tangible financing assistance.

Who are in fact the lenders you should be working with when arranging your franchise loan. In broad categories they are:

SPECIALTY FRANCHISE LENDERS
THE GOVERNMENT SMALL BUSINESS LOAN (very well suited to franchise finance)
EQUIPMENT LESSORS - They finance equipment and in some cases leaseholds
CANADIAN CHARTERED BANKS - Ongoing working capital and cash management

Since our theme is ' avoiding doing something wrong ' in franchisee finance it’s important for us to clarify the bank role in this industry segment. While a bank would consider financing your business directly it would place heavy reliance on your equity in the business, your personal credit, and collateral that you might have in savings, your home, etc. In our opinion where the banks do a better job is in the underwriting of the BIL loan when it comes to direct franchisee finance

To avoid making tragic, costly and time wasting mistakes in a franchising loan consider seeking and speaking to a trusted, credible and experienced Canadian business financing advisor who can asset you with franchise business loans that make sense for your future investment and success.


7 PARK AVENUE FINANCIAL
CANADIAN FRANCHISE BUSINESS LOANS EXPERTISE





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 :

Canadian Franchise Financing















Stan Prokop

Franchising Loan? What’s the Difference Between Franchise Finance And Other Business Loans?

Looking for The Complete Story On Franchise Loans?


OVERVIEW – Information on franchise financing in Canada . Exploring the differences between business loans in general and a franchising loan for the would be franchisee.



It's a great client question: What in fact is the difference between a franchising loan and a regular business loan

when it comes to arranging franchise finance in Canada?

The answer? There are some differences, but you just might be surprised at the similarities when it comes to comparing the two. Let's explain.

When it comes to the ' players ' in your finance loan, it’s pretty simple. Contributions are required from you, and your lender / lenders! In Canada those lenders are specialized franchise financing firms, banks, and third party commercial finance companies. While it is extremely difficult in Canada to obtain full financing for your franchise via a Canadian chartered bank the good news is that thousands of franchises are financed via the Government Small Business Loan which can provide funding up to $ $350,000. That's not chump change! . And when you hear what rates and terms and structures are required you'll be even more pleasantly surprised.

Clearly franchising fits into the area of the SME sector of Canada, and for that reason a lot of the challenges that the franchisee faces revolve around the same issues faced by any other start up. Yes , we agree that you're acquiring ( hopefully ) a proven business model but the early stage financing required to get you to a turnkey ' in business ' stage is still viewed as placing a heavy onus on the entrepreneur to come up with a decent portion of the capital yourself .

Franchising, as well as any other type of business requires two key components for initial capital... a ' plan ' and ‘management expertise ". And that plan by the way is known as the ' business plan ' - which is simply your well thought out road map to financial and operational success.

The type of financing that you obtain when you finance a franchise revolves specifically around ' use of funds ‘, another common term for any other business financing. In your case that might be real estate, construction, equipment and fixtures, leaseholds, and some opening inventory if you have a product as opposed to a service franchise.

We mentioned the Govt business loan previously as a great conduit to get you approved for your new business. But we point to out clients that that loan program only covers equipment and leaseholds, so items such as the franchisee fee and opening inventory are not financeable. We wish they were... but they're not!

We have referenced the fact that while Canadian banks provide millions every year for entrepreneurs in the franchise sector via the specialized BIL loan, they in general are reluctant to finance the business outside the Govt program. So discussions around bank financing quickly gravitate to personal collateral, home equity collateralization, etc. It's simply not the optimal way to go if you want to separate your business life from your personal life.

Another strong similarity in franchise finance when

compared to other business financing is the fact that a strong emphasis is placed on your personal financial history. This is typically documented by your credit report and a solid amount of emphasis is placed on this report. In Canada this report is in effect a scoring system and a good score of ' 650’ is required.
Simply speaking, the bank or any other commercial lender wants to know you will run your own business in the same manner as you have arranged and run your personal finances, and that of course makes sense - especially if you're the lender!

So as we have seen many of the concepts and lender views around any business finance loan or proposal pertain to franchise finance, with some nuances / differences. Seek out and speak to a trusted, credible and experienced Canadian business financing advisor for franchise finance assistance.

7 PARK AVENUE FINANCIAL
CANADIAN FRANCHISE FINANCING EXPERTISE



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/franchising_loan_business_loans_franchise_finance.html

Financing a Franchise. Here’s 4 Things To Worry (Or Panic !) About When Looking For Your Franchise Loan . Business Loans Are Critical To Success

Un- Worry Your Way To Canadian Franchise Success

OVERVIEW – Information on financing a franchise in Canada. Getting the right franchising loan or loans is critical to your success.


Financing a Franchise in Canada. We're all for ' un worrying ‘,

and not panicking, but the reality is that there are some key issues, financial, and otherwise when it comes to success in this entrepreneurial segment of the Canadian economy . And yes, the right franchising loan, or combination of loans

Although we’re focusing on franchising finance, there are of course other issues to get ' un worried ' about. They might include your overall personal suitability to be a franchisee in your franchisors system.

You also want to be able to have a strong comfort level that you have aligned yourself with the right franchisor. We're proudly Canadian of course, but we can't forget that many very solid franchise opportunities come out of the U.S. market based on their organization in Canada. In some cases you might be dealing with the Master franchisee of a U.S. organization, someone who has simply purchased the rights to the Canadian territory. Lucky them!

Another key aspect, our third in fact is the structure of the franchise when it comes to franchise fees and royalties. The reality also is that this issue is a key component of financing a franchise. Let's explain.

Although disappointing to many Canadian prospective franchisees typically the actual franchise fee is not financeable unless you are dealing with a very specialized franchise loan firm. This is typically shown as ' Goodwill ' on your balance sheet, reflecting the value of your franchise relationship from a financial perspective.


So make sure to carefully assess your ability to include that part of your business commitment in your total cash flow and cost to acquire the business strategy. The most typical franchisee fee we see when franchises are in the 350k range tends to be $ 25,000.00.

Right behind the franchisee fee when it comes to addressing our ' worrying ' are the royalty payments that come with your franchise obligation. More often than not these tend to be in the 6- 8 % range, and are a key driver in your cash flow analysis. That’s a good chunk of your profits if not managed properly.

So, we have covered off 3 key things to worry about when it comes to buying and financing a franchise - your overall suitability to run your own business, picking the right franchisor as a long term partner, and finally franchise and royalty fees.

Oh yes... about that financing!! In Canada your business can be financed by a specialized franchise lender, the government via the BIL/CSBF loan program, and a combination of lease and working capital finance options from the non bank sector.

Want to get unworried about financing a franchise? Seek out and speak to a trusted, credible and experienced Canadian busines financing advisor who can ensure you have access to the right financing options, and round out your franchising loan with the right combination of debt and working capital. Get ' un worried ' today!

7 PARK AVENUE FINANCIAL
CANADIAN FRANCHISE FINANCE





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/financing_franchise_franchising_loan_loans.html

How To Kick Start Franchise Financing Success. Funding Your Franchising Loan Needs In Canada

Canadian Franchise Financing Tips / Tactics


Information on franchise financing in Canada . How does the entrepreneur access funding for a franchising loan ?



Thousands of Canadian would be entrepreneurs in Canada clearly recognize the trend that franchising in Canada is a major industry and a leading contributor to the economy as a whole. You want to be a part of that trend!

So, that being said how does the entrepreneur translate that opportunity into his or her ability to kick start franchise financing funding in a manner that makes getting a franchising loan a success as a part of their overall entrepreneurial strategy?

Let's share some solid advice on what type of financing you should utilize to successfully complete your new or existing business acquisition. Yes, existing franchises can be purchased and financed also!

The amount of money that you yourself put into the business is a key factor in your potential sales and profit success. But two questions immediately arise: Do those funds necessarily guarantee you success based on how much you put in, and secondly, where do you access the balance of the finances you require?

One somewhat intangible issue that also always comes up is the ability of the entrepreneur/ borrower to demonstrate how much experience they have in a chosen industry or business. So things like your own outlook on being an entrepreneur / business owner (it’s not as easy as you think) and matching your skills to the type of business you buy and finance are critical.
By the way, we think there are very few executives in even the largest most successful corporations in Canada that have the total skills involving sales, marketing, operations and finance as a total skill set . Those people are the real superstars.

Naturally one of the reasons you purchase a franchise is that you are buying into, hopefully, a proven system of a brand, business model, marketing and advertising assistance, etc.

OPM is important when it comes to franchise financing. That of course stands for Other People Money, which represents the balance o the funding you need for your franchise purchase. In Canada, along with your equity, or we'll call it a down payment the balance of your financing comes from either a commercial finance company that either specializes in franchise finance, or one that can compliment the financing you need. A good example of that is an equipment finance company that can acquire and lease assets for you such as POS systems, other hard assets, vehicles, etc,

In general anywhere from 10 to 40%, sometimes more is required as a down payment or equity contribution to your business. We quickly add that that doesnt always necessarily mean that money is permanently contributed or ' tied up ‘, but you just must show that you have access to liquidity to get the busines off to a good start for working capital and growth purposes.

Two key points for the franchisee - a solid majority of the franchising loan scenario in Canada is done via the government BIL/CSBF program. It offers great rates, terms and structures for the acquisition of your business. Where the program falls down a bit is when it comes to a service type business where there are limited or no assets to purchase / finance.

Our other key point - have a crisp ' package ' in place when it comes to a business plan, industry overview, financial projections, etc. This isn’t the rocket science it sometimes seems when it comes to getting a good proposal in front of your lender. You can't afford to miss out on your business purchase just because of a poor presentation package, and it can also be easily accomplished by using an expert such as a Canadian business financing advisor that is experienced and has success and knowledge of franchise finance.

7 PARK AVENUE FINANCIAL
CANADIAN FRANCHISING FINANCE EXPERTISE




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_financing_funding_franchising_loan.html

Not Your Imagination ! It’s Possible To Finance A Franchise In Canada – A Franchising Loan ‘ How To’ !

Canadian franchise Financing Decisions You Need To Make


Information on how a franchising loan works in Canada. What are Options for business entrepreneurs who wish to purchase and finance a franchise?





One of the main reasons clients tell us that they wish to purchase a franchise is their belief that this type of business opportunity in essence gives them a head start in owning and successfully running a business... and we couldn’t agree more. But that life decision, and a big one at that, comes with the challenge of how to pay for, or finance a franchise. A franchising loan properly structured can make or break your business opportunity.

There really are 4 key categories or areas that you should focus on in both selecting and financing your franchise. They are the actual type of business you wish to be associated with... ie big, small, service based, asset based, hospitality based, etc. After that comes the all important analysis part of your decision. what we could call ' running the numbers.

Those numbers must then be translated into an effective financing plan to finance a franchise. i.e. getting a franchising loan that makes sense from a viewpoint of debt load, your own equity, and the right rates, term and structure that make business and financial sense, without putting you at risk.

Finally the 4th major consideration topic is simply ensuring you have weighed the pros and cons of owning an independent business under the franchise mode. The reality is though that you are in good company, as thousands have gone before you successfully, and a huge part of the Canadian economy (you’d be surprised how much) relies on the franchising industry for its products and services. And God knows the economy needs all the help it can get these days.

We tell clients that when they look to purchase a franchise they need to do a total... lets call it ' sanity check' on the numbers. Key questions need to be answered, including whether the investment will provide you with the proper return on your own investment. That’s an important concept when you think of it, and easily overlooked by franchisees that don’t have a strong financial background.

In essence you are simply asking yourself if the amount of money that you have to put into the business personally is going to be rewarded over time with a return. That makes total sense, don’t you think? In today’s Canadian franchising environment business owners can be expected to put anywhere from 10- 50% into their business. That amount varies with the size and type of franchise that you purchase.

In assessing your financial needs you need to take into account funds you need to open and purchase the business, as well as what type of working capital you need to maintain and grow the business - quite frankly that’s the same challenge that any business purchaser faces, whether or not its a franchise .

That ' pros and cons' analysis we spoke of is also critical at this point in your decision - you need to evaluate the cost of buying and financing a franchise against using that capital or debt to start a business . However, the concept of proven business models and branding is key, so that makes the assistance you get when you want to finance a franchise easier.

In Canada franchises are financed via one or two specialty finance firms, which tend to focus on the major players and names in the industry. Thousands of others are financed under the auspices of the government BIL /CSBF program. The attractiveness here relates to great terms, rates, structures, low personal guarantees, and flexible repayments.

Want help on making one of the most important financial decisions in your business life? Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in making the right decision and facilitating a franchising loan that works... for you !


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/franchising_loan_finance_a_franchise.html