YOU’RE LOOKING FOR FRANCHISE FINANCE ASSISTANCE!
FINANCING A FRANCHISE IN CANADA
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8
Looking to buy a franchise in Canada? And by the way, that might be an existing franchise already owned and in business (so why is he or she selling by the way?), or a new turnkey operation.
CRITICAL INFORMATION ON BUYING A FRANCHISE?
When it comes to financing franchisees in Canada what in fact does the entrepreneur need to know. In some cases that information is interesting, in some cases key, and in some cases critical. And oh yes, affordable franchise loans are in fact available. Let's dig in.
THE RIGHT TYPE OF FINANCING FOR THE FRANCHISE PURCHASE
At the core of arranging your franchise loan is the concept of matching the right type of financing based on the requirements of your business. That might be a term loan, overdraft facility, equipment and leasehold financing, etc. In most cases, it will be a combination of some of all.
THE OWNER DOWN PAYMENT/ EQUITY COMPONENT
The amount of ' down payment ‘, aka what the banks and your franchisor call ' equity ' is also critical to both your financing package as well as being tied to your overall success. In reality, many of the misc start-up costs associated with a franchise financing are in fact covered by the borrower - that might typically include the actual franchisee fee itself, design fees, incorporation costs etc.
HOW MUCH SHOULD YOU BORROW TO BUY A FRANCHISE BUSINESS
In hindsight when we look back at the franchisees we ourselves have helped an interested enigma emerges - some have borrowed too much and are laden with debt, some didn’t borrow enough and issues such as slow sales and constant working capital needs in many cases lead to franchise failure. Generally, the franchise fee is not financeable and is paid for directly by the borrower as a part of your franchise agreement obligation. Interest rates will vary based on the amount and type of financing and the overall ' credit quality ' of the transaction.
DOES YOUR BUSINESS PLAN REFLECT FINANCIAL PERFORMANCE?
How then does the entrepreneur know how much financing is needed, where it should come from, and where he or she will get it?! Part of the answer to that question lies in the need to make sure you have a good business plan. A properly crafted business plan and financial projection will always identify cash flow timing, working capital needs, and estimated term debt related to asset acquisition/replenishment. 7 Park Avenue Financial business plans meet and exceed the requirements of banks and commercial lenders.
Naturally, any good franchisor will share their financial experience with their franchisees in order to maintain the overall success of the chain.
THE GOVERNMENT SMALL BUSINESS LOAN IS A POPULAR WAY TO BUY A FRANCHISE
Franchise lending in Canada, as we have noted, is in fact ' affordable '. It comes also, by the way, from a variety of sources. While hundreds of franchises every year are financed by the Govt Small Business Loan (perfectly suited to franchise acquisition), many others are financed by specialized franchise finance firms complemented also by independent lease finance and commercial finance firms.
ANOTHER KEY FACTOR IN THE FRANCHISE LENDING DECISION
For business owners (‘the franchisee’) with good personal credit history and credit score financing is abundant because lenders in Canada have recognized the vibrancy of the industry and its role in Canadian business and economics.
CONCLUSION
If you're looking for affordable franchise loans that are properly structured to meet your long term goals of entrepreneurial success seek out and speak to a trusted, credible and experienced Canadian business financing advisor with a track record of success in financing franchisees in Canada.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
7 Park Avenue Financial/Copyright/December 2020/Rights Reserved
