This Just In! Get Rid Of Franchise Finance Fear Once And For All . Financing Franchising Opportunity In Canada
Franchise finance in Canada. The good news is that when it comes to financing franchising opportunity in Canada there are some proven methods for removing the ' fear ' or concern about not being approved for the purchase finance of your new business.
At the core of every successful franchise finance transaction in Canada is a solid business plan. And although you use this plan for financing the reality of it is that it has a lot of other value also. Most franchisors that have credible organizations in Canada, or who are U.S. owned can in fact provide you with some solid general assistance in the area of what should be in that plan .
Also, don't be fazed about the cost or time involved in putting together such a plan if you don't have a financial background. The cost of a crisp decent plan is in fact quite moderate and one can be completed in a relatively short period of time.
We find a lot of prospective franchisees have talked a lot about buying the franchise, and how much money they will make, while at the same time haven’t discussed the franchisors experience in their network of units in Canada when it comes to financing their stores. Oh, and by the way, we're even more surprised by many franchisors who don’t qualify their franchisees with respect to general credit worthiness, or net worth or business experience, but that’s another topic for another day. It would appear to us that if you're a franchisor you're only as strong as your weakest link!
Many franchisees in Canada have a fear of financing approval simply because they don't understand their options. There are only 4 options in Canada, and if you arent aware of all of them then we can certainly commiserate with you when it comes to being doubtful for financing success.
Oh, and what about those 4 methods. They are as follows:
You can self fund the entire transaction - not recommended, but if you can we're jealous!
You can use the vehicle in which thousands of franchises are financed - the Canadian government BIL/CSBF program
You can fund via a specialized commercial finance firm that specializes solely in financing franchising opportunities with well known franchisors
You can use a combination of any of the above scenarios and compliment that with equipment financing, merchant financing, or a traditional working capital term loan.
The key to a successful transaction is pretty simple, and it will remove all your fears if done properly. It’s to understand the level of personal financial commitment that you can bring to the table, along with planning venture with a proper business plan, and finally, soliciting the help of an experienced, trusted and credible Canadian business financing advisor who can assist you with the steps involved.