OVERVIEW – Information on sourcing franchising loan needs in Canada. Locating the right franchise financing lenders for your needs is a challenge you just might need some help with
Franchising loan needs of course involve franchise financing lenders. That search for the purchase of your business can seem very elusive to many entrepreneurs, particularly those that are new as franchisees.
How then do we find the right lender for our needs, and who in fact are those lenders. We supposed you could say we’re stalking those funders that participate in franchise financing – but not in a creepy way of course! Let’s dig in!
The majority of business owners would normally think that Canadian chartered banks probably offer their best chances of securing a franchise loan to purchase either a new or existing business. In some ways they could not me more wrong. If your bank does not have a formal ‘ program ‘ in place with your franchisor financing will be, shall we say… challenging! Banks prefer very established names that come with a brand and a lot of ‘ unit ‘ success in the market. (Think golden arches and rolling up cup rims)
Where the banks do play a key loan in franchise funding is via their partner in the transaction – the Canadian govt! That’s via the Govt of Canada Guaranteed Small Business Loan program which makes the transaction less ‘ risky ‘ given that the govt guarantees the majority of the loan in case of default. That type of backing makes any loan ‘ low risk ‘ for sure!
One point of clarification: Your bank will of course consider financing your franchise choice outside the Govt Small Business loan program. (By the way, the new 1 Million dollar limit on this program isn’t exactly small) However that will require full disclosure by yourself of your personal finances, tax returns, sources of income/savings, etc.
While banks could provide the maximum amt of funding you need at absolutely the lowest cost it’s safe to say that many franchisees would prefer to separate their business and personal finances when it comes to risk. Also if your bank is not willing to consider a pure franchise loan on its new merit it is often difficult to establish a new relationship within a short period of time based on your funding and timing needs.
Other sources for your franchising loan needs. They include a small handful of specialized franchise lenders who again also focus on programs they have in place with major franchising chains. These loans can be complemented by financing for various other lenders including leasing companies, working capital providers, etc.
Not sure you want to be a ‘ stalker’ when it comes to tracking down franchise financing lenders? One alternative is 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 originating the best funding to start or continue your entrepreneur journey.
Stan Prokop – founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years – Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Office = 905 829 2653
‘ 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 Prokop7 Park Avenue Financial
Canadian Business Financing