Financing a Franchise in Canada
Don't be put off purchasing a franchise by the financing.
A stellar business opportunity in Canada today exists for those who want to start their own business or expand their existing enterprise - the opening of an independently owned franchise!
With a wide array of opportunities available throughout the country, you are bound to find a fit for your needs. And you’ll be happy to know you have a number of financing options available to assist you.
When you begin looking into the purchasing of a franchise, you’ll be making a commitment, both in time and capital. However, hard working entrepreneurs need not be limited by their personal wealth. There are plenty of options for financing a franchise in Canada.
Once you begin the search, you should make a realistic assessment of what you can afford to invest and how much (if any) you may need to borrow. Part of that process is discovering all the financing options open to you for your new business.
Canadian finance institutions offer a number of custom financing packages. Business loans with flexible repayment terms are usually a safe choice. Sometimes those who decide to purchase a franchise go with a special line of credit, an excellent kind of financing for a short-term operation.
Look into both Acquisition Finance and perhaps Equipment Finance to help fund your venture. Different institutions will have varying degrees of flexibility when structuring transactions. You can opt for fixed or floating rates on your loan. It’s best to do your due diligence in discovering the best option for you.
When applying for a business acquisition loan, the lender will take into consideration your credit history, of course. Management experience and cash flow of the particular franchise itself will also come into the picture.
Getting financing is no walk in the park but when you look back on this process after you have your franchise up and running, I hope you will see it is all worthwhile. Congratulations on taking the first step towards being successful in your new business.