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

Franchise Finance Lenders – The 4 Most Critical Things You Need to Know about Franchise Lending

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Looking For Real World Franchise Finance Possibilities? We've Got Them !


Information on franchise finance lenders in Canada. Solutions to franchise financing loan success are explored in this article

Clients are always asking us, who are the franchise finance lenders in Canada. At that point they have made the decision to invest their time and money in a new entrepreneurial business, and have chose to either purchase a new franchise, or, in some cases and existing unit. (There are a number of reasons why current franchisees want to sell their unit to you – but you should carefully explore the reason for the sale for the obvious reasons)


So what are the 4 most important things you need to address, assess, think about, and action in your decision to finance a franchise. We feel they are as follows: They are by no means in order of importance, but at the same time you probably won’t be successful until you are in a position to have satisfactorily addressed all the issues:


You should have some experience in the industry, of feel confident that you and the franchisor have the ability to get you up to speed in training if it is a new industry for yourself - ( We caution you that the number of franchise lenders in Canada place a certain amount of focus on management experience ). However, if you can demonstrate good business acumen and previous success that certainly will help the franchise financing process.

2. You must demonstrate that you have a solid business plan - yes this had to be; written out’ so to speak. If you do not have the interest or ability in generating such a document you should seek the services of a trusted, credible and experienced business financing advisor to prepare such a plan.

 In our opinion the reasonable costs associated with such a plan are in the 750-1000$ range , which is a small portion of your overall investment and if it produces the financing you need, as well as delivering on a reasonable financial action plan that surely is money well spent .

3. Location / Location/ Location! That phrase is of course used a lot in real estate business – if your franchise is one in which a location is important you should clearly seek out a location that will assist you in driving revenue and sales growth for your industry.

We caution many clients that their own belief in the value of the franchise and their own skills in taking the business forward cannot always overcome a bad location. So if that’s a key element in the franchise you are considering purchasing then one of the ways in which you can address that issue is usually free – it’s simply speaking to a local real estate agent, preferably one with business, not consumer experience, and getting advice and opinions on the location you are contemplating.

4. Capital – Money! The financing of your franchise in Canada comes from the two key elements of business. These two key elements are the same for your franchise as they are for a mega corporation such as IBM – The two elements are:
Debt
Equity


The equity portion of your investment is your own personal resources. You should never entertain the thought of obtaining 100% financing for a franchise – while that generally wont fly with any franchise lender, at the same time you would probably be over leveraged and a suitable candidate for business failure .


So how are franchises financing in Canada. Who are the franchise finance lenders?
The best and most popular program is a government loan that is underwritten by the federal government, the technical name for the program is the BIL program, and most Canadian business people know the program as the Small Business Loan.

It goes up to $ 500,000 in some cases and is by far the most popular method of obtaining franchise financing, in tandem with you own investment, which can be anywhere from 10-50% per cent of the total amount you require . In recent years the bar has been raised on your personal equity contribution into the business.


In summary, franchise lending in Canada is a somewhat of a unique boutique type of finance. Work on our four fundamentals we have presented – also seek out the services of someone who is a trusted, credible and experience franchise lender who can assist you in your transition to franchise purchase and 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

How To Qualify For Franchise Financing In Canada – A Franchising Finance Business Loan That Makes Sense!

The GOOGLE fellow tells us that 2,687 people have read the following post we did in 2011


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How To Qualify For Franchise Financing In Canada –...

May 6, 2011,

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Here's The Post :

 http://businessfinancingcanada.blogspot.ca/2011/05/how-to-qualify-for-franchise-financing.html

Franchising Loans In Canada : Top Franchise Financing Tips Explained

Unlocking Franchise Financing Secrets In Canada

OVERVIEW – Information on franchising loans in Canada . What franchise financing strategies are available to the prospective franchisee

Franchising loans in Canada, properly obtained and constructed, help guarantee entrepreneurial success for prospective franchisees. We're going to unlock some of those ' secrets’ to help ensure that success story. Let's dig in.

We can categorically say, notwithstanding the tremendous growth in franchising in Canada, that there's no ' easy money ' on the table when it comes to this type of loan or finance solution. In fact, we can safely say that many of the requirements of any business loan apply to almost all franchise scenarios.

So it becomes a question of leverage ( the amount of debt ) the franchisee can take on, the collateral value of assets being financed ( equipment, leaseholds, real estate, rolling stock ) as well as the business experience of the owner .

Often overlooked, or simply forgotten, is the franchisee's ability to misgauge the working capital and growth financing that might be needed post acquisition. While in some cases it might be assumed your business will lose money in the early stages it clearly makes sense to focus on cash flow and profitability from day one.

We meet with many franchisees who are interested in, or in the process of acquiring an existing franchise. Getting past the fact that the franchisor itself must approve this type of sale it's absolutely critical to determine what levels of success (or distress) that business was experiencing pre purchase. This necessitates a strong look at existing financials, personnel, and market conditions re location, industry growth, etc.

While it might seem logical that Canadian chartered banks are the predominant financier of franchises in Canada this might actually not be the case. While the banks do in fact align themselves with the big names in the business those franchises are often, for the obvious reasons, more expensive and require much more capital investment and personal financial commitment.

The reality in Canadian franchise financing? It's that most operations are financed by a small handful of specialty lenders, as well as those borrowers to choose to opt for the Government Small Business Loan (aka the ' SBL ‘). Other forms of supplementary financing are also utilized and available to borrowers - they include equipment lessors, term lenders for working capital loans, merchant advance cash flow financiers, and loans secured by personal assets of the franchisee, the latter not recommended.

If you're looking to be successful and wanting to navigate the tips and tricks of the franchise finance maze in Canada seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you on the journey to entrepreneurial success.




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 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



Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing With The Intelligent Use Of Experience '

Stan Prokop

Financing Franchises In Canada : Which Franchising Loans Solutions Make Sense For You

6 Ways To Finance a Franchise In Canada – Spoiler Alert – 3 Are Not Recommended


OVERVIEW – Information on financing franchises in Canada. Franchising loans can be separated into different categories – which one is right for your purchase or acquisition.

Financing franchises in Canada has the potential do be done right, or incorrectly when it comes to the types of franchising loans that the potential franchisee might consider when purchasing a new or existing franchise. Note - Not all franchisees recognize an existing franchise can also be purchased. Let's dig in.







In a perfect world ( it's not )

you want to have the ability to assess every financing option you have and pick the one that is best suited to your needs Some of those choices might be we can call' traditional ' - some might be creative or alternative in nature.

While industry associations tout financing as a key initiative for the industry the franchisee often finds it very frustrating to source ( in a timely manner ) the capital they need to acquire the business.

It's all about you, as the franchisee and the lender(s). Let's examine the key elements that allow you to assess the amount of risk you personally are willing to take, as well as the risk any lender perceives in yourself and your transaction.

Let's examine 6 options:

1. In certain cases the franchisee has the ability, via personal resources to pay cash for the entire business purchase. Whether that’s driven by pride of ownership or fear of borrowing there are pros and cons to this option. As a cash buyer you are in a position to have not debt and financing costs associated with a franchise loan.

That heightens your probability of success, but at the same time puts all your investment 100% at risk if the business falters of fails. We have encountered numerous clients who have tapped out all personal resources and become at risk of failing when an initial stumbling block such as falling sales occurs. Remember also that even the largest corporations in Canada recognize it's good to have some debt to experience maximum return on investment based on the mix of equity and debt.

2. Traditional loans - typically these are bank loans and banks very, very rarely finance franchises on an as is basis. If they do they will require owner equity and collateral many times more than the investment you require. Additionally many industries are out of favor in some respect when it comes to traditional bank loans.

3. Many franchisees collapse personal savings such as registered accounts, or in some cases collateralize their homes in order to complete a franchise financing .Here again both the overall risk as well as tax implications often don't make sense when it comes to financing franchises in Canada in this manner.

4. Supplemental financing solutions - These are great and can complement the financing of your business. They include working capital term loans, merchant advances, equipment financing, and credit lines secured by inventory or receivables. While often not able to facilitate the entire financing they often can help complete a transaction nicely.

5. Franchisor financing - the bottom line, almost no franchisors finance their franchises in any sort of manner. They sell franchises and either don't have or want to commit the capital to complete a sale to the franchisee. The real solution is to finance the business via a specialized franchise finance firm who is associated with the franchisor directly. There are really only two n Canada at the time, and their scope is somewhat limited to larger well known chains.

6. SBL Loans - The Canadian CSBF program is a government sponsored bank loan that finances thousands of franchises. While not originally designed to finance franchises it has become a ' go to ' for many franchisees. The program has great rates, terms and structures, in some cases even better than traditional financing! The one caveat is that the program only finances equipment, leaseholds and real estate.

Which solution is right for you? As we have seen, some are great; some are not so great and in fact bring additional risk to the table. Also ensure you have a proper business plan and cash flow forecast, as well as a personal inventory of your financial net worth and the capital you can contribute to the business.

One solution? 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 franchising loans that make sense for your situation.



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






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 Loans In Canada : Do You Know How To Get A Bank Franchise Loan ?

Made In Canada Franchising Finance Solutions

OVERVIEW – Information on how franchisees can access franchising loans in Canada . The bank franchise loan is one method in which to complete a successful financing



Franchising loans in Canada , like most other types of business financing in the Canadian business financing marketplace are often associated with our Canadian chartered banks . So how then does the potential franchisee successfully complete a bank franchise loan , if in fact that is possible? Let's dig in.

Our banks are recognizing more and more the contribution made by the franchise industry - in fact top experts tell us that a huge portion of the Canadian economy runs through the franchise business model . So how in fact do banks participate in financing franchisees . Some of the ways will surprise most applicants.

In the case of certain large well known , let us call them ' branded ' names ( we're quire sure every franchisor feels they are a brand !) there are in fact ' programs' in place that can help the franchisor and the applicant in effect ' fast track' a successful financing. We're quick to point out that in pretty well all cases these ' programs' in no way guarantee a proper and successful financing, they simply can expedite it . The bottom line, normal bank credit criteria applies .

That bank criteria is of course known by hopefully all - positive personal credit scores, tangible net worth, homeowners - hopefully , and assets and savings outside of the balance being pledged in a franchise loan.
In many cases the bankers are aligned with lawyers and accountants who can help you finalize the entire process.

The ' ammunition' required to complete a successful bank financing if you're part of a successful franchisors program (i.e. one that is aligned with the banks ) is pretty basic - business plan, personal net worth, cash flow projections, CV . The bottom line is that an approved bank program will greatly simplify your financing journey .

As we have mentioned, only a small portion of franchisors in Canada are in fact aligned with a bank program . That leaves a lot of applicants spending a lot of time and money sourcing bank loans that ultimately aren't appropriate for the borrower. Is there ea solution to that?

We point out also that when sourcing a franchising opportunity strong consideration can be given to purchasing an existing franchise . This process eliminates a lot of the time it takes to complete a franchise loan, has an element of built in success given the franchisee's ability to investigate current profits and chance of busines growth .

When a formal bank program isn't a part of the franchise opportunity you are looking at the Canadian banks can still play a strong role . They do that through what is commonly known the ' SBL ' loan via Industry Canada . It's a government 'guaranteed' loan that over time has come to finance thousands of franchisees in Canada. We're quite sure that wasn’t the original intention, as the program was originally modeled after the U.S. counterpart - the SBA program .

The benefits of an SBL , as they relate to franchising, are sign cant . They include :

Competitive rates
No prepayment penalty
Long amortizations
Limited personal guarantees!

Canadian business owners and entrepreneurs, rightly or wrongly, gravitate to the ' bank' when it comes to financing of any type . It's important to know you a franchisee can access some form of bank financing to reach the finance challenges that the financing of any business can present .

In many cases the right financing advice will also lead you to other forms of external financing including : specialized franchise finance , equipment financing, working capital finance, and cash flow financing – All can make up a component of a total financing package.

For the right type of franchising loans in Canada seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you in franchise finance success.



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!





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 Loans In Canada : Eliminating the Alligators Around Franchise Financing Requirements

It’s True , It’s Really Hard To Get A Franchise Loan .. Unless



OVERVIEW – Information on achieving successful franchise financing in Canada . Franchising loans present a unique challenge to the entrepreneur entering this aspect of Canadian business






Franchise financing needs in Canada typically, and unfortunately, comes with a significant amount of ' worry ' around the franchisees ability to successfully complete his or her transaction and begin the entrepreneurial journey. More often than not the borrower finds themselves up to their neck in ' alligators '

as they encounter issues they previously have not considered. Let's dig in.

How then do franchising loans work in Canada, what’s involved, who are the players, and what is a solid ' fast track' to approval success? All good questions we think, as well as answers we're hopefully going to offer up.

Fundamental to understanding franchise loan success is the need for the franchisee to understand that despite the fact they are buying into a proven business model their business is after all a ' start up ' and ' small business' in many respects. That translates into a financing challenge as the lender places a significant amount of emphasis on your business background, your overall financial health, which is often score carded by your credit history.

Naturally your ability to attach yourself to a larger well known franchisor is a positive, but fundamentally all franchises can be financed.

A big mistake many clients we meet have made is to assume they will be receiving some, or a lot of assistance from their franchisor in respect to financing.

Nothing could be more wrong. A number of reasons exist for that - first of all your franchisor is in the business of selling franchises, they are not a finance firm. Also, numerous legal issues exist around their ability to promise your financial success relative to the risk involved in starting any business, large or small.

So as you come out of the gate in your decision to buy into the franchise industry (currently representing a huge portion of all the Canadian economy) it’s important to identify the lenders and expertise available to yourself to complete a successful financing.

In Canada that translates into a very small contingent of specialty franchise lenders, the Canadian banks via the ' SBL ' (BIL/CSBF) program, and miscellaneous offerings by various lessors and cash flow lenders.

If you’re not comfortable in dealing with, or spending the amount of time to cultivate expertise, and you want to eliminate those ' alligators ‘! , it’s very advisable to 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 franchise financing 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






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