Canadian Franchise financing - and approval process

Franchise Funding - Prospective franchisees in Canada want to know what is involved in obtaining adequate financing for their business. Many franchises we are not aware of how franchises are financed and what is involved, so let's share some critical information in this exciting and growing industry in Canada. Statistics show that franchises in Canada are, in fact, much of the Canadian economy, and business and consumer franchises are involved in almost every industry in Canada.As a potential franchisee you are either looking to buy a new opportunity curve key to a franchisor or master franchisee, or it can be fun, perhaps buying a franchise that is already existing set. It goes without saying that you should carefully consider the example of the current franchisee is selling. More often than not because of current franchisee wants to move to another business or career, but you should examine why he is leaving all reasons.There obvious are some innovative ways to finance fran
chise Canada. So how franchises are actually funded? Most of them are achieved through a government program called BIL (also known as CSBFL) program. This program is subsidized rate and the federal government structure and, in my view is, bar none, the best small business financing program in Canada. It can of course be used for new and existing franchises. The program offers rates and structures that larger companies can not achieve - Longer and amortization terms ie, very competitive rates and limited personal guarantees. When clients approach us with transactions that are more difficult to structure a strategy we employ is often used VTB. That comes from vendor acquisition, and allows the current owner in effect reduce the total cost for customer financing significantly. The owner has a system of promissory note from you and these notes are structured for maximum flexibility for both parties. To enable a quick example to show you the power strategy.Lets say you are buying
a franchise 400,00.00 0.00. Monthly payments on a loan of five years for the amount of financing would be about 7600.00. If the seller was willing to accept a 75,000 note from you to this part later repay your amount of new funding sources is 325,000.00 and the monthly payments are now only 6200.00. Implication that is easier to make a 6.2k / mo payment than a Payment 7.6k/mo! In such cases as this good negotiation and good intentions of all parties is needed, that's what makes a business work when both parties to adopt a win win attitude.Typical franchise loans tend to be in the range 100 -350K in our experience. Much larger loans often involve the best known names in their industries, and in many cases may have some properties attached to transaction.We have found great success with the \' cobbling together \' a franchise financing is environment in the current economic situation, the most successful strategy. Which usually implies we said BIL loan franchise, perhaps some
equipment leasing, and in some cases an unsecured working capital cash flow lending. A total package usually comes with a business line of credit Visa and initial operation to suit the needs of the overall financing strategy business.To franchise run properly you need a business plan and careful planning around the you need to buy the business, and as importantly how to fund future cash flow, inventory, summary needs.In and economic growth, finance franchise in Canada is unique and a specialized type of financing. We recommend you seek and use a business financing expert in this field, in order to help you determine your overall needs and how the funding will run on a successful franchise. a new step to be a successful entrepreneur! Stan Prokop is the founder of 7 Park Avenue Financial - Finance http://www.7parkavenuefinancial.comOriginating Canadian company specializing in working capital, cash flow and asset based financing, the company six years, completed in excess of $
45 million financing for companies of all sizes. For information and free advice on the financing of Canadian business and contact details: http://www.7parkavenuefinancial.com/franchise_financing_canada_process_and_approvals.html