Franchise Loan Finance Loans For 7 Park Avenue Financial

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The Secret Ingredients In Canadian Franchise Loan Finance  -  Making Loans For Franchises Work
Franchise Financing Tips and Strategies

You Are Looking for a Franchise Loan!  Loans for franchising Done properly! 

You've arrived at the right address!  Welcome to 7 Park Avenue Financial 

        Financing & Cash flow are the biggest issues facing business today

               Unaware / Dissatisfied with your financing options?

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Email  - INFO@7parkavenuefinancial.com

Ingredients - The dictionary defines that word as elements required for a plan.  No, we're not baking a cake here, we're going to instead define some key ingredients for a franchise loan in  Canada - Your ability to successfully arrange and get approved for franchise loans for your new business is, of course, one key to your future success.

We noted a 'plan‘, as referenced above.  We're the first to admit that franchising is as hot and popular as ever, so there is sufficient proof out there you can succeed - thousands of franchises all over Canada and the U.S. have taken the plunge and have become entrepreneurial successes.

But is it possible to fail? Unfortunately yes...  and even if you have a plan but have a poor franchise loan finance strategy in place for your business, coupled with your inability to fit the mould for your franchisor's plan... well you know the rest. Those are some of the 'soft areas' of potential failure, i.e. things like people skills, ability to manage a business, or simply not keeping to your franchisor's formula... those are all ingredients for failure.

But our ingredients are today focusing on the hard factors getting loans for franchise finance in Canada.

Two of the most important ingredients to your success are your ability to make a reasonable equity investment into your new business so that you are both not burdened with debt, but at the same time meet the criteria for specialized franchise loan programs that exist in Canada.

While one or two firms in Canada specialize in large multi-million dollar loans for well-known larger business blue-chip type franchises the majority of clients we meet tend to be looking at a restaurant or service type franchise that typically comes in at the 200- 400k range.

So what key ingredients are part of the recipe for franchise financing success?  They are, in our opinion, as follows - maximizing your ability to qualify for special franchise loan scenarios as offered by Industry Canada's BIL / CSBF program. This program alone finances most of the franchises in Canada and can help you turn your dream and passion for a franchise purchase into reality.

We're going to assume you have thoroughly researched your business and you've got what it takes, including some experience or relevant management background for the industry. What else is required for the financing plan?

Some of those key ingredients are a business plan, prepared by yourself or a professional, and by the way ... a few words about that plan. It doesn’t have to be 100 pages. It should be a clean simple document highlighting yourself, your franchisor, the industry, and most importantly, take some time to make sure the numbers work. Make cash flow assumptions that are reasonable; and by the way, don't forget to show the lender how they are going to get paid back for the franchise loan,

The majority of loans for franchises in Canada do fall under the BIl loan program we mentioned. It has great rates, terms and structures considering you are in effect a start-up business.

Have we forgotten any other secret ingredients? Perhaps one, which is your own credit history. Franchisees with a decent personal credit history have a much greater chance of success. Yes, you might have a good down payment and some solid collateral or assets in the business, but that personal credit history dictates how you run your personal financial life, which transcends clearly into your new franchise business.

Focus on all these key ingredients when you are getting down to applying for a loan for a franchise. To ensure maximum success you might want to lay out a simple basic plan of action with a trusted, credible and experienced Canadian business financing advisor who can assist you in ensuring those ingredients translate into a perfect recipe - franchise finance approval!

 

 

 

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' Canadian Business Financing With The Intelligent Use Of Experience '

 STAN PROKOP
7 Park Avenue Financial/Copyright/2024

 

 

 

 

 

Stan Prokop is the founder of 7 Park Avenue Financial and a recognized expert on Canadian Business Financing. Since 2004 Stan has helped hundreds of small, medium and large organizations achieve the financing they need to survive and grow. He has decades of credit and lending experience working for firms such as Hewlett Packard / Cable & Wireless / Ashland Oil