YOUR COMPANY IS LOOKING FOR BUSINESS FINANCE SOLUTIONS!
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?
CONTACT:
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Email = sprokop@7parkavenuefinancial.com
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 TO FIND THE RIGHT FRANCHISE LENDER
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 be 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)
THE ROLE OF BANKS AND THE GOVERNMENT IN FRANCHISE LENDING
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.
ALTERNATIVE FRANCHISE LENDING SOURCES
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.
CONCLUSION
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 who can assist you with originating the best funding to start or continue your entrepreneur journey.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop 7 Park Avenue Financial/Copyright/2020
