YOU’RE LOOKING FOR A FRANCHISE LOAN!
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
Franchise financing needs in Canada typically, and unfortunately, comes with a significant amount of ' worry ' around the franchisee's 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 when owning a franchise. Let's dig in.
UNDERSTANDING HOW FRANCHISE LOANS WORK
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 and personal credit score.
FRANCHISORS DON'T OFFER FRANCHISE LOANS!
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. Typically the franchise fee is paid directly by the new franchisee as part of your franchise agreement. 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.
IDENTIFYING YOUR FRANCHISE LENDER
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 and U.S. economy) it’s important to identify the lenders and expertise available to yourself to complete successful financing.
THE GOVERNMENT OF CANDA SMALL BUSINESS FINANCING PROGRAM IS AN EXCELLENT LOAN SOLUTION
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. As part of your application, a solid business plan is required. 7 Park Avenue Financial business plans meet and exceed bank and commercial lender requirements. The interest rate on the government loan is very competitive.
Don't forget also that working capital needs for business growth must be considered.
CONCLUSION
If you’re not comfortable in dealing with or spending the amount of time to cultivate expertise in business loans for a franchise business, 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 who can assist you with your franchise financing needs. Financing solutions vary greatly and many franchisors will demand solid applicants who understand the process.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop
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