The Secret of Franchise Financing Loans


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It’s appealing, we know that. It’s the idea of owning your own business that is a proven brand and money maker. Franchise financing loans can help you address your entrepreneurial vision of owning a franchise in Canada. The ability to own your own business and generate profits and wealth is of course appealing to all.

Picking your franchise in some ways is half the battle, as you probably have been focused on purchasing a new or existing franchise that matches your skills, interest, and experience. The other half of the battle and some say the harder one (we would agree) is arranging franchise financing loans that make sense for your business and your own personal situation.

As we point out to clients, whether entrepreneurs are starting a major manufacturing company that might employ hundreds, or a pizza shop with a staff of three two considerations come to mind, always – they are debt and equity. We’re of course referring to how much you will put into the business, and how much business credit for a franchise loan can be accessed.So are there some great secrets and tips we can share with yourself as a prospective entrepreneur – there sure are.

First tip/secret # 1 is simply to investigate carefully the financial requirements that your franchisor requires. These must be addressed in a solid and dedicated manner. If you don’t understand the requirements how can you address them? So ensure you understand the amount of financing the franchisor recommends. Is that all? Definitely not, that’s where our previous concept of planning was mentioned. Make sure you consider two other aspects of the business financing; they are working capital for daily operations, and some sort of plan for long term growth or expansion.

It’s probably not written in stone somewhere, but we have always felt that clients aligning themselves with a major brand that has a larger number of multiple units have a strong chance of financing success. Of course that isn’t always the case, as some new concepts in a number of industries continue to be introduced all the time, but it sure helps if the lender is enamored by the franchisors brand and success.

Another great tip and secret is simply that as opposed to spending all the time on the business itself when you are discussing financing, rather also focus on your own personal financial situation and experience. This is absolutely one of the most important criteria that banks pay attention to – namely how have you run your personal affairs, and at the same time do you have the type of business of management experience.

Some franchisees think because they don’t have very direct experience it might hinder their financing – the reality is by properly positioning your skills in a general sense, i.e. previous sales experience, customer service, etc you can capitalize on general business skills required to run any business.

You may not like to hear the news, but the reality is that you do in these times need a sizeable personal investment into the business, aka your owner equity. Those typical ranges between 30-50% depending on the size and nature of your franchise. In some cases you might be in fact buying an existing franchise from another franchisee who wishes for some reason to ‘move on.Let’s share probably our greatest secret in financing your franchise – the government of Canada. Many clients are surprised to hear that a government program known as the CSBF / BIL program is the largest financier of franchises in Canada. Its underwritten, structured, and supported by the government and offers great rates, terms and structures for amounts up to 350,000.00 – that amount was increased from 250k in previous years.

A final secret – experts are preferred – Speak to a trusted, credible and experienced Canadian business financing advisor on how you can efficiently and successful gain knowledge on franchise financing loans for your new business.

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Home Loan Finance – So Much to Choose From When You Deal With a Mortgage Broker

So often we settle for what is easiest or the most convenient. If you are looking for home loan finance you might think that the easiest course of action is to apply to your own bank. Well, it might be the easiest but it may not be the best or cheapest home loan available. Some borrowers don’t enjoy the prospect of applying for a new home loan directly with their bank. They don’t always have their financial papers in order, they are uncertain as tom what exactly is required for home loan finance. This is where a good mortgage broker makes it so much easier and delivers so much more to you.

I had originally applied for home loan finance through my own bank. Firstly I found it very frustrating that I could not speak to someone when I first called. I had set aside some time because I thought there would be a fair amount to discuss on home loan finance but when I eventually got through to someone they were unable to assist and could not put me on to someone directly to help with the queries I had about the home loan finance I wanted. No, I had to goivbe my name and contact details and wait on a return call from someone. Needless to say that came through at dinner time and it simply wasn’t convenient to discuss home loan finance when my son was wanting help with homework.I decided to contact a mortgage broker who had been referred to me by a friend. He had been in the market for home loan finance and had told me that by using a mortgage broker he had not only been able to obtain a better interest rate but the mortgage broker also ensured that the home loan finance was very flexible. The mortgage broker had experience and an extensive knowledge of the different home loan finance packages available in the market. I gave the mortgage broker a call and it was smooth sailing from there. He let me know what home loan finance was available and explained the benefits of certain features of different home loan finance product.

I knew nothing about 100% offset accounts for example and my own bank had not mentioned that this might be an attractive structure for me. I did have about $15000 in a savings account with my bank and the mortgage broker explained that if I put this into a 100% offset account (attached to my new home loan finance) then I would only be required to pay interest on the difference between my outstanding loan balance and the $15000 in my offset account. This made a significant difference to the total interest I would pay over the term of the home loan finance. My bank did not discuss the benefits of salary crediting and using a credit card for monthly purchases. The mortgage broker showed me how by crediting my salary to the home loan each month I saved in interest because interest is calculated on the loan balance on a daily basis. Even if I have extra money in the home loan finance account for a short while it still means a better “bottom line” for me. The mortgage broker advised that by using a 55-day interest free credit card to make my monthly purchases and then paying the credit card balance in full on the due date, I made further savings. The mortgage broker calculated the interest I would save by leaving my salary in the home loan account for as long as possible before having to pay off the credit card balance. As a general rule the banks might not highlight these features because if you use them correctly you save money while the bank , for a change, loses out!If you are in the market for home loan finance engage an expert mortgage broker to help you. You will definitely benefit as a result.

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What If Accounts Receivable Finance Was the Perfect Answer to Your Cash Flow Financing?

A tale of two worlds – one in which you have unlimited cash flow or one in which you had day to day cash flow challenges that hamper your ability to grow and manage your business. A cash flow financing solution could well be the solution to all your problems.

Canadian business owners and financial managers face, on a daily basis real world cash flow challenges. Lets look at an example at why accounts receivable finance can be your holy grail of working capital financing. Cash flow financing goes by a number of different names in Canada that is part of the confusion we are always trying to wade through on our client’s behalf – various terms apply to this type of business financing. They include: factoring, invoice, discounting, A/R financing, etc. Depending on how you transaction is structured and who you are dealing with is really the key issue, not what the financing is called.

Clients always want to know if they are a candidate for this type of business financing. There are some perfect candidates, so let’s look at a profile or two in order that you can determine if you fit. Generally you will have accounts receivable that pay fairly regularly but are on occasion slow – your overall bad debt experience has probably been quite satisfactory. Your invoice and stated terms for your customers is 30 days, but guess what, most of them seem to be paying in 60 and 90 days – that definitely seems to be the trend of clients we talk to.Does size count – In cash flow financing it really doesn’t – speaking in general terms if you have at least $ 50,000 of invoices a month you are a candidate for accounts receivable finance. The reality is that corporations with many millions of dollars in receivables actually utilize this form of financing also.

We hasten to say that in most instances the size of your facility will affect your overall pricing. In our experience you can potentially reduce the cost of your accounts receivable finance facility by close to 1% per month if you have a large facility. However, we spend many hours and many meetings educating Canadian business on factoring pricing, which is grossly mis understood by most clients who look into this type of business financing.

So the bottom line is that you should not let your company size, or any other challenges you might be facing – (temporary financial losses, restructuring, etc) affect you ability to successfully achieve an accounts receivable finance strategy.

Many times the decision to consider cash flow financing of your receivables comes from directly related issues to collections – in some cases the slow pay nature of your client may be affecting your ability to purchase inventory or meet payroll – those are some typical factors that drive customers toward factoring.When you finance (in effect you are selling) your receivables under this type of facility you immediately receive an 80% advance on your invoice- that allows you to meet obligations and expand your business.

Most business owners know that if they had access to working capital they could readily grow their business – yet the traditional sources of business financing in Canada, i.e. chartered banks have made it challenging for firms to finance receivables in a manner that makes sense for the business owner. In some cases, as we noted, your business has or had challenges that prohibit you from temporarily sourcing cash flow financing.

Speak to a trusted, credible and experienced business advisor in this area – determine if accounts receivable finance is right for your firm, and focus on getting into a facility that meets your needs re day to day workings and cost.

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Finance and Accounting Course – Takes Your Career a Step Ahead!

There is an increased demand from employers for young professionals that are trained and well-prepared for careers in accountancy and finance. Finance and accounting courses are seen to be spreading almost everywhere. You can find them easily over the internet or in many other areas. Thus, it signifies that if you would go for these programs, then there will be a variety of job options available for you.

By studying the different accounting programs that are supported by special accounting institutes, you can receive a solid grounding in all areas of accounting and finance, including audit, corporate finance, taxation, law and financial management. But before all this, the important question that is to be answered is “How to choose the best accountancy curriculum?”Go through the following elements and be confident about selecting the correct educational plan:

Popularity: Do some research and go through the ratings and reviews before choosing out a program. Some of them really teach very well, while on the other hand there are some courses that do not provide us with the ideal teachers and learning. So select the course that is most popular and offers the best professionals. You can also make your decision easy by examining the number of people who have subscribed for these. If the curriculum is really worthwhile then it would have an identity worldwide. The course should provide you with good business opportunities.

Excellence & Quality: These two characteristics should definitely be kept in mind while going out for studies in accountancy. You can make a background check of these programs to find out its popularity and value when it comes to the level of quality.

Flexibility: A perfect finance course that is worth it will provide you with great abilities that are relevant to any kind of accountancy organization. Once the training course is complete, you should obtain professional status in different areas, be it in the public or the private field. To become a very good financial specialist, you also require practical knowledge. A good training course also needs to involve you in real accountancy work that assists you to choose an employer which best fits in your talent.

Ethics is a must: The accounting courses hold a lot of robust codes of conduct, laws, and regulation. Due to all this, you should choose a program that concentrates on expert ethics along with excellence. Go through a variety of courses offered and look into the syllabus thoroughly to determine which courses focus on specific fields that will be beneficial for you.Student Guidance: A good course provider will definitely look after the well-being of the students. Ask questions such as “Does the firm have a number of offices that will help you out to solve your queries?” “Will proper training be provided to students?” and so on.

But if you are unsure about what to do and how to go about it, then speak to a qualified and impartial career guidance practitioner to make it easy for you.

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