The decision to buy a franchise is sometimes easier than how to arrange your financing for the business, because we think in many cases you have been able to match your skill sets and interests to a business you have probably wanted to get into for quite sometime. Financing that opportunity is probably an area that you're not necessarily comfortable in if you don't have a finance background.
However, don't despair, because if you are properly armed with the right strategy and info and advisory support you are in a strong position to complete your financing.
So what exactly is the foremost method of arranging finances when you buy a franchise? It comes as a shock to many that the majority of financing in Canada is done under a government loan program called the BIL/CSBF program. The government? Absolutely.
Consider this. Would you not agree that if you arrange financing for your business under a 5 or 7 year term loan, at rates that many established businesses can't even get, and, here's the kicker, you don't even have to provide a 100% personal guarantee for the financing. Enough said, we think we have made our point.
Unfortunately just knowing about the program doesn't guarantee financing your opportunity will be successful. You need to understand the parameters of the program, how to prepare a proper submission around your new business, and finally, ensure you meet some general criteria around what will constitute a solid approval.
Naturally the whole opportunity becomes even more serious based on the total cost of the franchise and the personal investment in time and funds you are prepared to make in the business. Generally in our experience you can expect to receive only minimal support or financing advice from the franchisor. In many cases that is simply because there are various legal ramifications around franchisors providing you with estimates or guarantees of profits, and success. But lets be honest also, the franchisors business is selling franchises, not financing your new business opportunity.
The key essentials of the BIL program are a solid business plan that provides a good overview of the franchise opportunity, your background, and most importantly, the numbers. Does it surprise you that the lender focuses on how they will get repaid - it shouldn't. So your business proposal should be realistic and focus on cash flow, profits, and debt repayment.
Does your small or medium-size business need a new phone system? Then you're in luck! Our new, updated comparison guide helps you cut through superfluous information and narrow down your list of solution providers. Get the latest data on phone system features, pricing, and performance metrics in an easy-to-use format. more
The holiday season is filled with frenzy and excitement for businesses and consumers alike. Consumers prepare gift lists, compare brands and prices, and begin shopping with a vigor that is not present most other times of the year. For many businesses, the holiday season accounts for a large profit bump at the end of each year, and companies strive to exceed their goals and keep customers happy during this rush late in the year. more
There are a lot of possible reasons you might want to switch to a new phone system. The old one might cost too much or be too troublesome to operate and maintain. It might not be flexible enough. It might not be reliable enough. Or it just might not have the kinds of features and capabilities that you need in today’s competitive business climate. more