Surviving The Franchise Business Loan Process - Doing it Right In Franchise Finance Funding in Canada

We wouldn’t say that it’s a life and death situation, but clearly surviving the entire franchise business loan process with a final result of successful franchise funding of your new business is clearly a victory on your part.

Let’s examine how you find franchise finance funding in Canada and the most efficient methods to complete the process when it comes to time, resources, and utilizing proper expertise.

Although there is somewhat of a negative spin on business funding and business financing in general the reality is that as a whole the franchise industry is viewed as a positive ' vertical market ' by the lenders that participate in this area . Many new entrepreneurs will be surprised to hear that one government financing vehicle is actually the most utilized by new franchisees.

We also sometimes forget to reference the fact that when it comes to a franchise funding that whole process can also involve your purchase of an existing franchise where the current owner is motivated to sell. Certain processes, procedures and recommendations on buying an existing franchise are somewhat different than your traditional new ' turn key ' approach to a brand new franchise.

So let’s get back to our ' survival ' theme. What elements of preparation are critical to that? Many franchisees we talk to complain or tell horror stories of the time it took them to finance their business. Our observation on that is simply that if you are not fully prepared up front to present a package to the right party, containing all the critical elements... well you know what comes next... there is just simply a tremendous amount of back and forth and potential frustration on your part . And don’t forget you also run the risk of alienating your lender and being perceived as ill prepared to own and run an entrepreneurial business.

So what you do need to have in that packaged that allows you to survive the entire financing process?
The key elements are a concise business plan as a good start! We also caution franchisees that the plan should focus on repayment of the loan and franchise funding itself - with less emphasis on all the marketing and ' pr ‘type material that is in many plans we see.

Key elements of that plan are your background and experience. If you are purchasing a business and looking for a franchise business loan in an industry in which you have no experience be aware that that will be come a discussion point with the lender. In reality any business person that has solid overall management experience and skills, coupled with some financial acumen should be in a position to ‘up sell ' their skills as a new franchisee and entrepreneur.

We speak of the ' lenders ' in franchise finance funding in Canada. If you don’t know who they are we can virtually guarantee you frustration and a potential decline of your proposal.

The largest franchise lender in Canada... are you ready for this... is the government of Canada by virtue of their support of a special program called the BIL/CSBF loan program . The majority of franchise business funding is done through this program. By the way it has great rates, terms and structures that are often perfect matched to your needs.

In summary, we can clearly say that a franchise business loan is not 'rocket science ' ; identify a suitable BIL/CSBF loan partner , prepare a clear package that’s focused on your and repayment of the financing, and consider seeking the services of an expert in Canadian business financing in the franchise area . You'll find you have survived the process and come out on the other end approved and ready to commence your role as a new Canadian business owner in the franchise industry.

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Stan Prokop - founder of 7 Park Avenue Financial -
http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :

http://www.7parkavenuefinancial.com/franchise_business_loan_franchise_funding_finance.html

Franchise Funding and Financing Options for Franchisees In Canada

As a new potential franchisee in the Canadian franchise industry you want, and need! … some basic info around how franchise funding works in Canada. Those financing options may be critical to your overall success as a new entrepreneur in your chosen industry.

Ironically experts tell us that one of the main reasons that people don’t go into the franchise arena as independent business owners and entrepreneurs is because they feel they either did not have or could not raise the funding for the business.

Naturally in the current tough ( but getting better!) economic environment start up capital for any business is a challenge - so having access to the best information and resources around franchise funding is clearly a major key to success .

It kind of all starts with a business plan , we meet with many clients who have initially been refused for franchisee financing for the very simply reason they weren’t prepared and the reality is you don’t get a lot of chances in financing a new business when you are unprepared .

If you aren’t able to prepare a proper plan yourself you can speak to a trusted advisor in Canadian business franchise financing and one can easily be prepared for you - it’s all about working with an expert. The key part of any business plan is that you can present your financials properly - which simply means what sales you feel you can achieve, what your expenses will be, and what projected profits will be . A key element of all that is your ability to generate cash flow to repay your franchise funding loans - which makes perfect sense - from the lenders perspective of course!

Your plan has to be presented properly and you should be able to anticipate any questions the lender will have about your experience, how you will run your business, what other resources you can bring to the table, etc.

It’s not always about size in life, but in this case we do advise clients that the larger your franchise financing requirement is - well you should be expected to have a more detailed proposal and plan.

Franchisees in Canada may not be aware that their biggest ally Vis a Vis a financing option for their new business is the Canadian government! That tends to floor our clients when we share that info with them - but the reality is that the majority of the financing in Canada for franchisees revolves around a government sponsored loan that is formally called the BIL or CSBF loan program. It is underwritten by he government, but administered by the banks in Canada

Rates for the above mentioned franchise funding and loan program are very competitive and there are some key requirements you should have ready when you submit your proposal for consideration. And by the way, OPM does not work in franchise financing in Canada - that being the acronym for other peoples money! We are always explaining to clients that the funding of their business comes from two sources, the loan or loans, and their own personal equity injection - so you must absolutely be prepared to make a personal equity investment in the business.

How much of your own equity is required - that can be calculated by simple formulas pertaining to the amount you have to borrow and your ability to meet debt to equity ratios and working capital solvency .

There are some great franchise opportunities in Canada. Investigate your financing options with a trusted, credible, and experienced Canadian business financing advisor who will work wit you as a potential franchisee to achieve business financing success.

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Stan Prokop - founder of 7 Park Avenue Financial -

http://www.7parkavenuefinancial.com

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 50 Million $$ of financing for Canadian corporations .Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/franchise_funding_financing_options_franchisees.html