How To Get A Canadian Business Loan For Franchise Funding Solid Franchising Lending Tips

They usually always start with only one question. Who is ‘ they ‘? Its clients with that age old question ‘ How hard or difficult is it to get a business loan for a franchise in Canada these days? They of course have made one of the biggest decisions in their lives/ careers, vis a vis becoming a franchisee in this booming industry – now the only problem is …’ What type of franchise lending and funding is available ?’

Well, we’ll share with you some tested and proven strategies around franchise financing in Canada, focusing on completing a successful transaction in a minimum amount of time, with a finance plan that works for you, not just the lender!

On its own franchising has somehow become an industry with a strong and viable reputation. It, like all industries was hammered hard during the 2008-2009 recession; bus has bounced back strongly, even moreso than many other industries.

So, it becomes a simply two part question then, can you get a franchise loan these days, and more importantly, how?

There are some key factors to consider, one of which is simply aligning you, hopefully with a strong franchisor. So once you have made the decision to partner with a franchisor (we use partner because we think they need you as much as you need them!) you only need one thing. Whats that one thing?

It’s a ‘ package ‘. By that we of course mean that you need a solid little package that convinces both the franchisor, and of course moreso the lender that you are equipped, from a financial and planning perspective to be a winner as a franchisee.

So what are the key elements of a successful winning plan? It’s really pretty basic stuff, and in our experience many good franchisors have already done a good job of helping you prepare for this. Those key elements are as follows – an overview of your own background and experience, an overview of the franchisors business ( its your new business too, by the way!) and a solid financial plan that demonstrates two things: how you will make money , and of interest to the lender, what type of cash flow you will have to repay the loan!

It’s a bit of mis information when franchisees come to us having assumed the franchisor helps them get the financing. Some do assist in a mild sort of way, but we can assure you that you’re on your own when it comes to achieving final success.

So the question then becomes how do you get prepared and qualified? Answers as follows! Get working on that business and financial plan we talked about. Identify the amount that you can contribute to the business, essentially your ‘ owner equity ‘, with the rest coming from your loan or loans. Typically a minimum of 10% and up to 30-40% is required.

It’s always helpful to know how the last guy succeeded, don’t you think. In reality the largest per cent of franchise financing in Canada is done via a government sponsored loan that’s formally called the BIL/CSBF program. Why that loan , and why you should investigate it ?Some great reasons are 5-7 year payback terms, great market interest rates, no pre payment penalties , and you don’t even have to personally guarantee the full loan . Is there a better deal in town? Maybe, it just that we haven’t found it.

We also hasten to add that for any type of business loan, and certainly in franchise lending, the funding and approval of your loan assumes you have a reasonable personal credit history.

So, want to get with the program? Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you to meet your franchise funding and lending needs, today!

How Obtaining A Criminal Pardon Improves Employment Prospects

Anyone that has ever been arrested or convicted of a crime in Canada and the United States is at a distinct disadvantage when it comes to gaining and keeping a job. A person’s criminal record is readily available to the general public and can be easily accessed by anyone that wishes to check it, including current and potential employers. In today’s computer age, all it takes is the click of a computer mouse to access a wide variety of information on any individual, including details of their criminal record history.

It is standard procedure for many employers to conduct criminal record checks on all job applicants before hiring. It stands to reason that a prospective employee with a criminal record has less chance of being hired than a comparable candidate without a criminal past. Many employers would be hesitant to hire a candidate when it was revealed that he had a criminal record. Even if the charges on record are viewed as minor, they may cause employers to question the prospective employee’s character, as well as their honesty and judgement. In many professions, possessing a criminal record would all but eliminate any chance of being hired. Some jobs require that employees be bonded; however, bonding companies are cautious when insuring a person with a criminal record and typically charge employers more-often more than the employer is willing to spend.

Fortunately, it is possible, in most cases, to have a Canadian criminal record removed with a pardon. A criminal pardon will ensure that all of a person’s criminal records and charges are separated from other personal records and rendered inaccessible to individuals and organizations such as employers, educational institutions, volunteer organizations, and bonding companies; in essence, it is sealing the criminal record. In addition, anyone who has been convicted under Canadian law can apply to the Canadian government for a pardon once their sentence is completed and a certain period of time has passed.

There are many advantages in obtaining a criminal record pardon, especially for those seeking employment or career advancement. The Canadian Human Rights Act protects individuals who have received pardons from discrimination, particularly from employers and landlords. The Criminal Record Act eliminates the need for employees to reveal pardoned convictions on government employment forms. By using the professional services of a firm that specializes in obtaining pardons, the complicated pardon process can be completed in as little as 8 months.

Competition in today’s job market is tough, and employers are more meticulous and discriminating in the selection process than ever before. They have ready access to all types of data when researching the backgrounds of potential employees. Having a criminal record puts a prospective employee at a crippling disadvantage. For individual’s seeking employment, obtaining a criminal pardon can do more to improve their employability and career prospects than anything else they might do. For employees who live with the constant fear that at anytime their undisclosed criminal record could be revealed to their employer, causing embarrassment and wreaking havoc on their careers, obtaining a criminal pardon could offer peace of mind. A Canadian criminal pardon levels the playing field for those with criminal pasts, enabling them to find success and security.

Supporting Sap Business One If Your Implementation Failed – What To Do Next

This small article is written with the international focus. SAP B1 was initially targeted to small businesses, however its reasonably rich Corporate ERP functionality dictates mid-market user license cost (especially for SB1 professional user, where license is close to k$3 in USA). There is large number of Certified SAP BO consultants on the Corporate ERP consulting market, however in our opinion SAP B1 requires closer attention to such technologies as Crystal Report, SB1 SDK (Microsoft Visual Studio ecommerce programming in C# and VB.Net), SAP Business One Data Transfer Workbench (where you do initial SB1 data conversion from your legacy system, such as MYOB, Peach Tree, Quick Books, Accpac, Great Plains Accounting for DOS, Windows and Macintosh). We do not pretend to be ultimate authority for SAP Business One implementation recovery, however we did the service for numerous companies in the USA, Canada, Brazil, Russia, China. OK, below is our article:

1.Corporate ERP localization dilemma. Typically your problems are related to language translation and the compliance to the local country tax and corporate reporting legislation. SB1 is localized and certified in most of the Globe (probably excluding Arabic alphabet countries). SAP Business One supports Unicode (Chinese, Japanese, Korean). SAP certifies its SB1 application with local tax and government authorities in the countries, where SAP Business One is localized. New SAP Business One version 8.8 is now available on the same flavor for all the countries (while 2007 and 2005 versions were available in A and B flavors, and you had to implement them on different SQL Servers with different code page and language collation). For SB1 8.8 you can deploy SAP Business One system for all your international companies, where SB1 is localized: China, Russia, Korea, Japan, Thailand, Brazil, India, France, UK, etc.

2.SAP B1 implementation recovery service. We saw numerous implementation screw-ups when your company requires challenging technology integrations: ecommerce, barcode scanning and integration, EDI, customizations, Crystal Reporting, deep data conversions from your legacy accounting package to SAP B1. And you have to be tolerant to the consulting industry practices: your generic certified SAP Business One consultant should be good in Corporate ERP presentation, user licenses sale, CPA type of the implementation with reasonable onsite user training, simple initial data conversion (via SB1 Data Transfer Workbench, where you should help your consultant to prepare CSV files, based on DTW CSV templates)

3.SAP Business One Data Conversion Puzzle. Typically here you have the problem with your current SAP Business One Reseller, who has no experience in industry specific data massage and migration from your legacy accounting or Corporate ERP to SAP Business One

4.Do I have to switch out to another SB1 Partner? Yes, this is what you have to do or what is sort of recommended. Your SAP B1 Partner has access to your company record in SAP Portal and it allows your chosen partner to broke for your and sell you new software licenses

5.How to get help? Please, call us 1-630-961-5918, in USA or Canada: 1-866-528-0577, or email us:

Deciding On How To Finance A Franchise Canadian Franchising Business Loan Info On Financing And L

Not only do you want to have a solid plan when you want to finance a franchise in Canada – it sure helps when that plan makes sense for the business financing loan / loans that you need!

We think that most Canadian entrepreneurs who are either first time franchisees or perhaps are adding another location to their business would agree that its not as important as to where the franchise lending and business funding comes from, but that you get the full funding at terms that make sense for you personally .

Let’s examine some of those key decision points and requirements that you need to fulfill a proper franchise financing solution in Canada.

We think that a lot of franchisees are sometimes overly focused on ‘ the interest rate ‘ when they are seeking a franchise loan. That’s human nature we guess, but the reality is that the loan is simply commensurate with your overall credit quality and in line with the types of financing that are out their in the Canadian business financing market – unfortunately that market for new franchisees is somewhat more limited that in the U.S.

In Canada franchises are financed really in only 3 or 4 different manners — actually 5 we could say if you considered financing the whole franchise yourself through personal savings.

While that might seem a good idea we think in many cases it is not for a variety of reasons – i.e. collapsing personal investments and savings and assets when you don’t have to cant be an overall great strategy. We spoke awhile back to a franchisee who had pledged and used all his personal assets to acquire a franchise – business was slow, and he was unable to secure additional outside financing to re- boot the business because all his personal assets were pledged/gone. Bottom line, not recommended!

So the question then becomes as to how you decide to finance a franchise once you have made that acquisition decision. We’d like to share a couple key points. First of all, whether it’s a franchise or any business whatsoever, it’s financed by two guys, debt, and equity; i.e. what you borrow and what you put in yourself. Spend some time determining the optimal mix and you will best be able to gravitate to the right financing strategy.

In Canada these days we see franchisees putting in anywhere from 10 -50% as their personal investment into the business. Whats the perfect number? The reality is there isn’t one, because each business requires a different amount of financing and has a different mix of assets and financing needs. The key assets and financing needs in franchising are all your initial soft costs, such as the franchise fee, and then comes your costs to open the door, often called the ‘ turnkey ‘. That turnkey component consists of equipment, leaseholds and opening working capital.

We spoke of 4 methods of franchise financing in Canada .Those are as follows : Specialized commercial finance firms that have dedicated franchise finance divisions , Equipment financing, Working Capital term loans as a supplement to your overall financing, and finally the BIL/CSBF loan . The latter is the government SBL loan that is used by hundreds, probably thousands of franchisees to acquire their franchise. It only has one or two limitations, one of which is that it caps out at 350k, but that certainly covers a lot of franchises in Canada in different industry segments – examples restaurants, service businesses, etc.

So, today’s bottom line? Simply that spending some quality time early on in the process in understand which of the 4 options makes sense for you is a valuable investment. That time, coupled with your business plan and financial projections will help you ensure that you have the right mix of financing solution, as well as a properly chosen business loan strategy for your franchise.

Speak to a trusted, credible and experienced Canadian business financing advisor on how to best decide which financing mechanism works for you.

Government Business Financing In Canada Canadian Govt Loans Deliver

Government business financing in Canada – While many entrepreneurs have heard of Canadian govt loans they have not fully understood his business finance offering. Let’s ‘ unbox ‘ the program and discuss the merits and applicability of this loan to your business – and that applies to start ups, franchises… in fact any business tha is under the pre-requisite 5 Million in revenues. Let’s dig in

Established by the federal gov’t many years ago the Small Business Financing program is dedicated to helping new , young, and growing businesses access the financing they might otherwise not receive.

The uniqueness of loan is that the majority of the loan is ‘ guaranteed’ to Canadian banks which offer the financing. At the end of the day it’s the govt commitment to encourage Canadian banks to lend to new and smaller businesses. Naturally one of he benefits to the government is the overall economic stimulus in employment, taxes, etc.

In recent years upwards of 7000++ businesses access the loan annually – for billions of dollars. The accessibility of the loan is augmented by the fact that Canadian ‘ bricks and mortar’ branches are on every main street in Canada. (Truth be told the challenge is not finding the right bank, it’s finding the right banker).

The ability to get approved for a govt small business loan in Canada provides realistic access to capital for businesses who otherwise cannot qualify for ‘ traditional ‘ loans. Yet the actual offering of the program is just that – a traditional term loan at attractive rates, great amortizations, and even the ability to pre-pay without penalty.

Many businesses who utilize the loan are either new, or in some cases purchases of businesses, including the very popular ‘ franchise ‘ segment.

The requirements of the loan are pretty basic – the owner must have reasonable good personal credit history, and must be able to contribute a minimum of 10% or more of permanent capital to the financing in question. The loan can only be used to finance 3 separate asset categories – equipment, leasehold improvements, and real estate. (The latter, real estate is rarely used in our experience as commercial mtges are more suited to this type of finance need).

As important to understand what the loan does to is what it doesn’t offer. You cannot use proceeds to refinance existing loans or for working capital/line of credit needs.

Other key aspects of getting approved include a good business plan, a cash flow forecast, and basic info on your business location, previous business experience, etc.

If you’re looking to ‘ unbox ‘ government business financing in Canada seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist in making Canadian govt loans a realistic part of your new or existing business venture.

Stan Prokop