You Are Looking for Start-Up Business 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
Unaware / Dissatisfied with your financing options?
Call Now ! - Direct Line - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
Email - INFO@7parkavenuefinancial.com
You're there... almost. You've made the decision to buy a business - it could be a restaurant or any other business for that matter. So let’s make sure franchise financing is not going to hold you back on the realization of your dream and vision as a Canadian entrepreneur.
So how exactly do you find the funds you need? It's actually a process of careful planning around the type of financing that suits your purchase, and finding and working with the right lender to ensure the business is finance properly. Naturally planning and demonstrating you have thought out the financing is key also.
In terms of franchise financing your business - again it could be a restaurant or one of the hundreds of other franchising opportunities out there in the Canadian marketplace... it's important to break down the total financing need into categories because in most cases each 'category' of your requirement is financed a bit differently. As an example, the working capital component, what you need to run the business on an ongoing basis is usually financed by a traditional offering such as a business line of credit, or business credit cards if it’s a smaller business.
We encourage clients to cover the actual franchise fee out of their own equity contribution to the business, as it's challenging, if not impossible in the Canadian marketplace to finance your actual franchise fees. Items such as equipment, leasehold improvements, software, point of sale systems, etc. are very financeable. And truth to be told these items make up the bulk of your financing needs more often than not.
Franchise financing around your business is in fact a 'niche' or specialized sector in Canada. But the reality is that many of the same principles apply to financing your start-up, restaurant purchase, or any other business for that manner.
What then are some of the basics around the process that allow you to get to the financing goal line... successfully! Items such as having a handle on your personal net worth and knowing what your maximum equity contribution to the business will be in terms of your personal financial situation are important.
We won’t say it's impossible, but the reality is that you must have a decent personal credit score and history to be considered for franchise financing for your chosen business. The entire credit history of every Canadian is actually based on one number called a beacon score, and you require a certain 'beacon' to be approved for business or for that matter any other type of financing. The bottom line, obtain your score and understand how it fits into the big picture.
In your business plan or executive summary ensure you focus on key items such as the following - info on your own experience, information on the industry and type of business you are purchasing, and finally, perhaps most importantly, a financial projection.
Ensure that financial projection makes sense from a viewpoint of reasonable profit expectations - with a focus also on how your loan financing will be paid back. The reality is that this document and how it is presented can make or break your financing approval.
While financing in some form could be provided by your franchisor, this in our experience is very rare - they are selling franchises, not borrowing funds to allow you to borrow from them. So review carefully, with professional assistance, your key financing options - these include the specialized BIL/CSBF loan, equipment financing tailored to your asset needs, and working capital options that might come in a variety of financing 'flavours'.
You have a good chance of accelerating your approval by working with an expert - that works in all manners of business. So seek a trusted, credible and experienced Canadian business financing advisor who can assist you in turning the business ownership dream into financial reality.
business franchise financing start-up restaurant
