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Franchising Loans In Canada : Top Franchise Financing Tips Explained

Unlocking Franchise Financing Secrets In Canada


OVERVIEW Inor!ation on ranchising loans in Canada " What ranchise
inancing strategies are a#aila$le to the prospecti#e ranchisee
Franchising loans in Canada, properly obtained and constructed, help guarantee
entrepreneurial success for prospective franchisees. We're going to unlock some of those '
secrets to help ensure that success story. Let's dig in.
We can categorically say, notwithstanding the tremendous growth in franchising in
Canada, that there's no ' easy money ' on the table when it comes to this type of loan or
finance solution. In fact, we can safely say that many of the reuirements of any business
loan apply to almost all franchise scenarios.
!o it becomes a uestion of leverage " the amount of debt # the franchisee can take on, the
collateral value of assets being financed " euipment, leaseholds, real estate, rolling
stock # as well as the business e$perience of the owner .
%ften overlooked, or simply forgotten, is the franchisee's ability to misgauge the working
capital and growth financing that might be needed post acuisition. While in some cases
it might be assumed your business will lose money in the early stages it clearly makes
sense to focus on cash flow and profitability from day one.
We meet with many franchisees who are interested in, or in the process of acuiring an
e$isting franchise. &etting past the fact that the franchisor itself must approve this type of
sale it's absolutely critical to determine what levels of success "or distress# that business
was e$periencing pre purchase. 'his necessitates a strong look at e$isting financials,
personnel, and market conditions re location, industry growth, etc.
While it might seem logical that Canadian chartered banks are the predominant financier
of franchises in Canada this might actually not be the case. While the banks do in fact
align themselves with the big names in the business those franchises are often, for the
obvious reasons, more e$pensive and reuire much more capital investment and personal
financial commitment.
'he reality in Canadian franchise financing( It's that most operations are financed by a
small handful of specialty lenders, as well as those borrowers to choose to opt for the
&overnment !mall )usiness Loan "aka the ' !)L *#. %ther forms of supplementary
financing are also utili+ed and available to borrowers , they include euipment lessors,
term lenders for working capital loans, merchant advance cash flow financiers, and loans
secured by personal assets of the franchisee, the latter not recommended.
If you're looking to be successful and wanting to navigate the tips and tricks of the
franchise finance ma+e in Canada seek out and speak to a tr%sted& credi$le and
experienced Canadian $%siness Financing 'd#isor (ith a track record o s%ccess
who can assist you on the -ourney to entrepreneurial success.
!tan .rokop , / .ark 0venue 1inancial 2
http233www./parkavenuefinancial.com
)usiness financing for Canadian 1irms , speciali+ing in working capital, cash flow, asset
based financing , 4uipment Leasing , franchise finance and Cdn. 'a$ Credit 1inance .
1ounded 5667 , Completed in e$cess of 86 9illion : of financing for Canadian
corporations . Ino )Contact :
* +'R, 'VE-UE FI-'-CI'L . C'-'/I'- FR'-C0ISE LO'- E1+ERTISE
0a#e ' 2%estion )Co!!ent On O%r 3log Or Canadian 3%siness Financing
'lternati#es 4
CO-T'CT:
* +ark '#en%e Financial
!outh !heridan 4$ecutive Centre
58;6 !outh !heridan Way
!uite <6;
%akville, %ntario
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/irect Line @ 7;= <;8 A/=8
Oice . 86A ?58 5=A<
E!ail @ sprokopB/parkavenuefinancial.com
5 Canadian 3%siness Financing With The Intelligent Use O Experience 5
Stan +rokop