A Franchise Loan Need : No Miracle Required For Loans For Franchises

Let Franchise Financing Be Your Success Story In Entrepreneurship

OERIE! " In#or$ation on loans #or #ranchises in %anada & !hat are the 'ey
ele$ents o# #ranchise loan success #or the ne( or e)isting #ranchisee
Loans #or #ranchises in Canada have the ability to make entrepreneurship a true success
story in Canadian business - being unsuccessful brings the opposite. Let's dig in.
A franchise loan in Canada, achieved properly and under the right circumstances gives
the franchisee the ability to acquire and grow a small business into a larger successful
business. nfortunately there is no ' instruction manual ' on getting franchise financing
done right , so we'll share some sound strategies and info on ensuring you're a part of the
Canadian franchise success story .
!hile there are always different factors why a franchise might fail - i.e. lack of
management, e"perience, a poor choice for franchisor or location , etc its a pretty sure
thing that financing done properly is also at the heart of franchise success.
#ot having the right amount funding will always be a setback for the new franchisee -
most will agree it sets up a recipe for guaranteed failure. $hat undercapitali%ation comes
from a couple of key mistakes made by the new franchisee&
Ina*ility to truly understand their operating costs
+oor start up esti$ates
No *ac' up plan i# additional equity is required
Lac' o# (or'ing capital a#ter the #ranchise is acquired
+oor planning #or #uture in,est$ents required in assets- (or'ing capital-
reno,ations- etc
$here is no easy money when it comes to franchise loans in Canada. !hile the .'.
market has a substantial number of other financing options the Canadian franchisee must
choose from a small handful of finance options - therefore re-enforcing the need to do
things right.
$hose franchise options( $hey include specialty franchise funding from the one or two
players in Canada offering this financing, the )ovt 'mall *usiness Loan , and a
combination of commercial finance solutions via equipment financing, leasehold finance,
merchant cash flow advances,
!hether it+s a franchise loan or any other type of business financing leverage, i.e. the
right amount of debt is key to business success. $ypical satisfactory debt to equity ratios
for franchise financing are in the ,&- ./ 0&- range, meaning simply that the owner
should have at least a half or a third of the total capital committed personally .
$hose funds typically come from savings, but we always encourage franchisees to never
over commit personal capital and not to collapse registered investments or take on
collateral mortgages on personal property. *ottom line - don't mi" your personal and
business finances in the wrong manner.
1f you're looking to be a ' 'CC2'' '$./3 ' in Canadian franchise financing when it
comes to a franchise loan seek out and speak to a trusted, credible and e"perienced
Canadian business financing advisor who can help that ' miracle needed ' process along .
Stan +ro'op - . +ar' A,enue Financial :
http&44www.5parkavenuefinancial.com
*usiness financing for Canadian 6irms , speciali%ing in working capital, cash flow, asset
based financing , 2quipment Leasing , franchise finance and Cdn. $a" Credit 6inance .
6ounded ,778 - Completed in e"cess of 97 :illion ; of financing for Canadian
corporations . In#o /%ontact :
. +AR0 AEN1E FINAN%IAL 2 %ANA3IAN E4+ER5ISE IN LOANS FOR
FRAN%6ISES
6a,e A 7uestion /%o$$ent On Our Blog Or %anadian Business Financing
Alternati,es 8
%ON5A%5:
. +ar' A,enue Financial
'outh 'heridan 2"ecutive Centre
,9-7 'outh 'heridan !ay
'uite 07-
.akville, .ntario
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9 %anadian Business Financing !ith 5he Intelligent 1se O# E)perience 9
Stan +ro'op