Franchise Financing Canada Business Purchase 7 Park Avenue Financial

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YOUR COMPANY  IS LOOKING FOR CANADIAN FRANCHISE FINANCING! 

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

Franchise Finance in Canada calls for both you as the owner, as well as a lender, to, on a combined basis, complete the financing you need for a franchise acquisition. In Canada you could of course be acquiring a new turnkey franchise from a U.S. or Canadian franchisor, or in many cases also considering the purchase of an existing franchise.

KEY QUESTIONS FOR FRANCHISEES TO ASK THEMSELVES

Several key questions are always tabled by our clients – inevitably they are:

-How much do I have to put into the business as my own investment?

-Where do the other funds come from?

And, oh yes, how long does the process take?

We always encourage clients to start thinking of financing very early in the process. A great place to start is often, guess who? Your franchisor! That is simply because if they have a multi-unit system already in place they usually have a strong indication of how these franchises were financed.

Information you obtain from the franchisor or other existing franchisees is invaluable, as the franchise financing journey is a puzzle to many. We also are quick to add that you should never expect financing assistance from a franchisor in the form of loans, etc. – The franchisor grows their business from selling you franchises, not loaning you money.

In the U.S. the majority of franchises are financed via the SBA, which stands for Small Business Administration. This is a government-sponsored / funded loan, and Canada has a similar program that is commonly known by several different names – they are SBL, CSBFL, and BIL. All of these are acronyms for the same program.

You should most certainly incorporate your business to both gain access to business credit as well as limit personal liability. Personal liability under the Canadian version of the program is limited to only 25% - that’s a great deal for the business owner, as it of course limits your risk.

HOW TO GET A  GOVERNMENT SMALL BUSINESS LOAN

Most franchises in Canada are financed via this program. Sounds good so far right? We simply point out to clients that achieving success in this financing program is simply a case of:

-         ensuring you understand the basics of the program – i.e. what it does not do

-         complying with the information required by the program

KEY COMPONENTS OF A BUSINESS PURCHASE FINANCING

When planning your franchise financing, focus on what amount you can contribute personally to the business, and also understanding the components of financing you need. What are those components? They are:

-         Soft costs ( example – franchisee fees, pre-paid rent, etc.)

-         Equipment

-         Leaseholds (if required)

-         Working capital

We can’t overemphasize the need to work with an experienced and credible business financing advisor who preferably has a track record of franchise financing success.  A thorough business plan, the right advice, and understanding your financing needs – all are critical elements to franchise financing success!

Click here for the business finance track record of 7 Park Avenue Financial 

Stan Prokop 7 Park Avenue Financial/Copyright/2020