Franchise Financing
There are all sorts of independently owned franchises all over Canada. These franchises are individual locations of larger businesses like McDonald’s, Canadian Tire and Tim Horton’s among many others.
However, there is no need for a business in Canada to be that large in order to have many franchises. Any kind of business can get a new franchise opened up in any place around Canada. Getting a good franchise location opened up can be financed through a variety of different types of financing.
Franchise financing can be a fairly simple process. In this process, the capital that a business has along with additional capital from external sources can be used to help with supporting the creation of a new business opportunity.
For example, a business can acquire a loan through the Canada Small Business Financing Act. This loan can be worth several thousands of dollars and can help to get a business the money needed for purchasing property or land and to get new pieces of equipment.
A special line of credit can also be offered. This line of credit can be added to support a short term operation like the start of a new franchise.
Some providers around Canada are able to use their own unique franchise financing services. For example, TD Canada Crust (http://tdcanadatrust.com) can offer a Business Visa card to a business that is opening a new franchise. This can allow a business to manage its expenses and have money needed for supplies and small equipment. Meanwhile, CIBC Commercial Banking (http://cibc.com) offers full loans alongside business banking services that can be used for getting new accounts and loans.
It is generally best to get into a franchise financing plan in the event that the business already has $250,000 and the total opportunity that the business has is worth at least five million dollars. Also, it is strongly recommended for businesses that already have good balance sheets and are financially stable.
A good thing to do is to contact the Canadian Franchise Association for assistance. The CFA (http://cfa.ca) is able to provide businesses with franchise and marketing consultants who can assist a business with the franchising process. Accounts and legal support can also be provided. This is a useful organization that is currently supporting hundreds of notable brand names all over Canada. It should be used for the benefit of any type of business that needs expansion help.
Franchise financing is a critical type of business service that any successful and growing business in Canada should be considering when it is looking to expand. Getting money through a merchant cash advance can be a smart thing to do when it comes to getting this financing. The financing can ensure that a business will have the money that it needs for it to flourish in a new market and to end up bringing in more money in the long run.
(For more information visit cfa.ca. For more info on the CSBFA visit http://www.ic.gc.ca/eic/site/csbfp-pfpec.nsf/eng/home)