- Here’s An Opinion On:
- Vehicle Leasing Bowen
Don’t Gamble On Franchise Funding Success . Finance Your Franchising Opportunity Properly!
by
stanprokop
Franchise funding in Canada. At times does it seem like you have to take a real gamble on the franchising opportunity just to complete a transaction properly? And then finance it? Is there a better way? We think there is, and here’s why, and how!
We’re the first to admit making that franchise purchase decision is a huge leap of faith for many existing and would be entrepreneurs. Not only is it appropriate and important to align yourself with the proper franchisor, the challenge then becomes assembling what we could call a small ‘ team ‘ of advisors and mentors. So who is on that team – typically it’s a key contact at your franchisor, your accountant or franchise lawyer, and a financing advisor of some type – it might be your banker, it might not be.So if you have a team in place is there still a gamble and risk here? To some degree yes, as the question still hangs over your opportunity, namely ‘How does franchise financing work and can I convince a lender of some sorts to approve my transaction?”If there is any good news in the cloud of doubt we seem to be casting (we’re not trying to be negative!) here it’s simply that a franchising opportunity is viewed as a positive business model in today’s Canadian lending landscape.Getting the right terms and conditions and utilizing the best finance program for franchises is key. So what then makes franchise funding and getting your acquisition in place a ‘ gamble ‘ sometimes? One thing is the quality of your team – the advice and direction you get from your franchisor, your finance partner, your specialized franchising lawyer etc are worth a million dollars… or close to it!When it comes to financing you absolutely must be working with a lender of financing advisor who is both positive, and yes, experienced! in franchise finance. The reality is that there are always naysayers in any crowd, so if you get the old line ‘ we like you and your idea but we just think it’s too risky ‘ you are absolutely going to have to replace some of our aforementioned team mates!Who are the preferred lenders in franchise funding in Canada. You might be surprised to know it’s the federal government! Under the auspices of the CSBF program thousands of franchises are financed in Canada every year. Is it an automatic approval? Hardly – but you can eliminate a lot of the gamble we have been talking about by simply focusing on a crisp presentation. That includes a solid business plan , cash flow, ( Cash repays loans by the way !) and the ability to position yourself as having an appropriate level of business or industry experience within the sector you are entering into with your franchisor .While we identified your franchisor as part of your team we would quickly hasten to say that you’re really gambling on success if you are relying on the franchisor to help you with financing in a direct manner. 99.999% of the time they don’t and won’t. That is why the CSBF program we mentioned is so popular. It’s a largely guaranteed government loan that still gives you tremendous financing flexibility. Other sources of financing include specialized franchise lenders and commercial finance and leasing firms who can assist in closing your transaction successfully.Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in removing the ‘ gambling ‘ aspect of successful franchise funding in Canada.
Stan Prokop – founder of 7 Park Avenue Financial – http://www.7parkavenuefinancial.com
Originating Canadian business financing and , specializing in working capital, cash flow, asset based financing . In business 7 years – has completed in excess of 80 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 re: Canadian business financing & contact details : http://www.7parkavenuefinancial.com/franchise_funding_finance_franchise_opportunity.html
Article Source:
Don’t Gamble On Franchise Funding Success . Finance Your Franchising Opportunity Properly!}