Is there too many expert knowledge of a franchise business a bad thing? We certainly do not think so and we will show you how to get finances for a franchise business that you have chosen to buy.
When you talk to franchise financing customers in Canada, we are generally talking about the scout boy’s currency. You will remember that their motto is “prepared” and it is the total strategy around a successful franchise financing that you need to adopt.
Getting money to buy your franchise often the greatest concern of new entrepreneurs such as yourself. People are looking for opportunities for franchise because they basically look for a combination of opportunities and wealth – there is generally only a major obstacle to this road to success, it is the financing of the acquisition of the franchise activity.
If we had to summarize in a very simple and fundamental foundation, you must succeed in the financing of the franchise, we would modify it up to some key problems. Want to know what they are? From our point of view, all of this amount to a reasonable experience of commercial or management experience, a decent personal financial profile – more on it, and access to “interior secret” of franchise financing in Canada, What can be surprising to know, is the Government of Canada!
Curs up on these points – and as always, it comes back and return to the motto of our scouting – Be ready. We can see our client’s eyes rolling now when we tell them we need a crisp corporate plan. This is an essential requirement for your ability to get finances for a franchise, simply because it is the “proof”, if you want, your ability to understand and run your business properly. In this document, you have information about yourself, the company you buy, the industry in which you find yourself and the financial performance you plan to achieve in your new role as a business owner and contractor .
Financing for perspective lenders, a franchise business is quite a thing – be reimbursed for the loan. So the lender will examine how you have structured the financial part of your business plan to reflect the ability to repay your franchise loan, as well as the amount of cash and working capital to pay for your salary and manage. Your new company. Should something be more important than a properly manufactured and positioned business plan – we do not think so.
Your money – You have it, you want to keep it – do not we all. However, whether it’s a franchise company or any business on this OPM does never work – OPM is “other people money” and you can not count on 100% of external financing For finances for a franchise in Canada. So be ready to invest anywhere, from 25 to 50% of the purchase price in your acquisition. Coupled with this and this is essential, you must be able to demonstrate that you have executed your personal and commercial affairs respectively from a credit perspective. Obtaining a copy of your credit report, in advance, by you, is highly recommended.
And, oh yes, what about this government issue we mentioned. This is one of the great secrets and advice we have promised to reveal. Did you know that probably 90% or more of funding from a franchise company in Canada revolves around a special loan program called CSBF / BIL loan? It is a federal program and administered by financial institutions. What’s what? Limited personal guarantees, significant rates, terms and structures.
Talk to a franchise financing expert when looking for finances for a franchise – search for someone who trusts, credible and experienced. Be ready and get ready to succeed.