Feeling ‘ Unfriended ‘ By Franchise Finance Solutions ?

OVERVIEW – Information on franchise business financing loans for the Canadian would be franchisee . Franchising finance requires expert laser like focus to successfully complete finance needs

Franchise business financing loans
can often make the potential or existing franchisee fee very… shall we say ‘ Unfriended ‘when it comes to achieving the goals they have set out.

Franchising for the entrepreneur or existing franchisee comes with two business challenges at the start of the journey- how to buy a franchise and how to grow one. Let’s dig in.

We can’t think of a ‘ hotter’ industry to be a part of these days, and that’s a good thing given the tremendous importance the industry plays in economic growth, employment, etc. In many cases both experienced and new entrepreneurs view this business model as a way of achieving viable employment and business ownership

If all of the above is the case why then are many business people challenge for the franchising finance they need. While it might seem logical that the franchisor itself might be a source of financing for the business those situations are very rare ones. It’s not that the franchisor doesn’t want to help; it’s just that their business model involves selling franchises, not financing them.

So who then are the lenders that focus on Canadian franchising finance? While they are a very small select handful of specialty lenders the majority of franchises in Canada are financed by the Govt SBL loan, owner equity, and assorted finance strategies from commercial finance firms that play a key role in asset acquisition and cash flow finance.

For your bank to consider financing in this Canadian business segment it’s a case of ensuring your relationship with the bank is well established. That will come down to providing income history, employment history and experience, and ensuring you have the credit score and financial net worth to approve a stand alone loan. While some maintain that the type and name of the franchise you are looking to acquire is important we maintain it’s all about the basics we’ve mentioned already.

When a Canadian chartered bank won’t finance your business on a stand alone basis doesn’t forget you have a great partner in the CSBF loan, which has recent changes making it even more attractive to entrepreneur. Don’t forget also that we’re talking about existing franchises also – if you have determined valid reasons for a current owner to sell, and the franchisor will allow that sale the benefits of buying an existing and proven business are significant .

In specialty, or indirect franchise financing the basics NEVER go away. They include having a solid business plan, cash flow forecast, good personal credit, and the ability to verify your assets and net worth.

When considering the purchase of an existing franchise don’t forget to do the right amount of due diligence – get the current and historical financials, examine bank statements to verify cash inflows, and ascertain the right reason the owner is selling.

Don’t forget that franchise business financing loans are a journey in some respects. Financing is needed to acquire the business, and you’ll need working capital and possibly new debt alternatives to grow the business.

Don’t want to get ‘ unfriended ‘ by the challenges of financing? If you want to make franchising success your finest hour consider seeking out and speaking to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you in your loan needs.

Author: Stan Prokop 7 Park Avenue Financial :

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 :

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